The recent declaration by OPEC and its partners (OPEC+), alongside the G20 and some non-G20 countries (OPEC++), to cut oil production should help stabilize the market over the coming quarters. OPEC+ took the lead in finalizing the agreement to cut global production by 9.7 million barrels per day (MMb/d) starting May 1, then 7.7 MMb/d in the second half of 2020. This should, in turn, help the oil industry as prices recover gradually. Nevertheless, a prolonged period of low oil prices accompanied by low investment in oil is expected to have a strong negative impact on producers in 2021.
KAPSARC Oil Market Outlook
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