Trump: Oil production to be cut significantly
President Trump says OPEC has agreed to cut oil production by approximately 20 million barrels
Oil prices hovered near their lowest level in 18 years after a monthly OPEC report projected global demand would fall by 6.9 million barrels per day amid the COVID-19 pandemic.
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West Texas Intermediate crude, the U.S. benchmark, closed flat at $19.87. Brent crude, the international standard, was up 0.47 percent at $27.82.
“The impact of the COVID-19 outbreak in China in the first quarter of 2020, and its negative impact on transportation and industrial fuels in the country, has since spread globally and is now affecting oil demand growth in most other countries and regions,” OPEC's monthly oil report said, adding that global demand was on track for its first annual decline since 2008-2009.
The COVID-19 pandemic has caused governments around the world to issue “stay-at-home” orders, crushing demand as producers grappled with a supply glut worsened by the recently resolved price war between Saudi Arabia and Russia. As a result, WTI has plunged by 67 percent so far this year.