Last weekend, the OPEC+ group finally announced long-overdue production cuts in response to the coronavirus-driven collapse in global petroleum demand. OPEC+ will reduce production by 9.7 million barrels per day (bpd) as of May 1.
Combined with the impact of expected market-driven production declines in other countries and below-quota production by some OPEC members (such as Iran, where sanctions have limited exports), this will withhold 20 million bpd of supply from the market next month. The OPEC+ supply cuts are scheduled to moderate to 7.7 million bpd for the second half of 2020 and 5.8