OPEC agreement collapses and takes oil price with it

Get this report


You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

09 March 2020

OPEC agreement collapses and takes oil price with it

Report summary

On 6 March 2020, the OPEC+ group failed to reach agreement to extend production restraint beyond the end of this month. The previous day OPEC agreed to a proposal calling for an additional 1.5 million b/d reduction in supply through at least Q2 2020. Russia rejected the plan and with that, the group dis-banded without an official statement. In response, on 8 March, the Saudis announced a steep $4 to $8 per barrel reduction in April’s Official Selling Prices (OSPs). These cuts are seen as the start of a price war and Brent has moved to $34 as other markets also fell on 9 March due to fears about the spread of the COVID-19 virus. Highlights of our initial market analysis include: • The effect of these events on short-term oil market fundamentals • A forecast for Brent in Q2 2020 based on our assumptions • How will US supply behave? • Assessment of global breakeven prices

Table of contents

  • Effect on the oil market and fundamentals
  • Demand won’t be spurred by low oil prices
  • Russia opts out of OPEC proposal
  • US Lower 48- crucial lever in global market

Tables and charts

This report includes 1 images and tables including:

  • Global future resource cost curve

What's included

This report contains:

  • Document

    OPEC agreement collapses and takes oil price with it

    PDF 822.66 KB