The latest development from yesterday was that Mexico is playing hard ball and that is currently threatening the OPEC+ proposal put forward ahead of the meeting later.

OPEC+ members have called for international producers to rally on their side but at this stage, there’s no real certainty about what could happen next given the twist yesterday.

Either way, don’t expect any output cuts agreed to compensate for the loss of demand due to the economic shutdowns globally at the moment.

Whatever we are seeing will just help to ease the bleeding but the longer the global economic situation continues in this fashion, the weight of the supply glut will continue to grow heavier for oil prices. WTI crude fell by 9% yesterday, closing near the lows at $22.76.

Tony Connelly from RTE reports that a deal has been reached in the eurogroup meeting.

There were reports about deep rifts between the north and south. This is a big turnaroud. The details are important though, they could have a ‘deal’ on some token measures.

Update from Tony: EU finance ministers have reached agreement on a European rescue plan. The ESM element has been agreed, the European Commission’s SURE package, mobilising up to 100bn has been agreed, + the EIB pan European guarantee scheme has been agreed. Work to begin on a “recovery” fund, subject to “guidance” by EU leaders, possibly some kind of coronabond or “solidarity” fund by another name.

These numbers are smaller than hinted (hoped?) earlier.

More: Figures on Eurozone breakthrough: €240 bn for ESM enhanced conditions credit lines; €100 bn for SURE work subsidy plan; €25 bn for EIB cheap loans for corporate sector, leveraged up to €200 bn – source n terms of ESM conditionality, the enhanced conditions credit lines ECCLs will focus on COVID 19 expenditure and will end when crisis over. Terms to be agreed by ESM governing bodies.