After a week-long marathon of bilateral calls and four days of video conferences with government ministers from around the world, including the OPEC+ alliance and the G20, major oil producers managed to seal a historic agreement to cut output by nearly 10 million barrels a day, starting May 1. The agreement effectively ended the price war between Saudi Arabia and Russia that had flooded the market with crude. With little time to celebrate, oil-producing countries across the globe continue to combat the coronavirus outbreak and bolster their economies in the face of the biggest demand drop ever and prices in danger of falling to historic lows.
Will the biggest agreement of its kind in history succeed in stabilizing oil prices, and appease existing worries about the demand destruction brought on by the coronavirus pandemic? How will demand destruction impact how oil and gas market dynamics unfold? How will continued lower oil prices impact the clean energy transition? Are small and mid-sized producers likely to abide by the agreed output reductions? How will oil production cuts and consequent oil prices affect producers in the Gulf? What are the next steps for Gulf Arab governments aiming to shore up revenues and protect their economies?
Erin Blanton, Senior Research Scholar, Center on Global Energy Policy
Jason Bordoff, Founding Director, Center on Global Energy Policy; Professor of Professional Practice, School of International and Public Affairs, Columbia University
Robin Mills, CEO, Qamar Energy; Nonresident Fellow, Center on Global Energy Policy; Nonresident Fellow, AGSIW
Robert Mogielnicki, Resident Scholar, AGSIW
Christof Rühl, Senior Research Scholar, Center on Global Energy Policy, Columbia University
Kate Dourian, Nonresident Fellow, AGSIW; Regional Manager, Middle East and Gulf, World Energy Council