Head of Texas RR Commission just got off the phone with Russian oil minister Novak. They talked about 10 mm bbl/d production cut.

[BLA + 1,666]

More PR than substance.

The producers have to make major cuts to exports not production.  

There is so much oil in storage and the demand destruction won't peak for a while.

Psych wise it might help for a time, but I believe reality will settle back in eventually.

Edited April 2, 2020 by BLA

[Tomasz + 1,608]

Quote

 

The cost of oil production at mature fields in the Russian Federation is $ 3-7, new - $ 15-20 per barrel

MOSCOW, April 2 / PRIME /. The cost of oil production in mature fields in the Russian Federation is about 3-7 dollars per barrel, and in new ones - 15-20 dollars, said Russian Energy Minister Alexander Novak.

"If we talk about the fields that were put into operation a long time ago, their production costs range from $ 3 to $ 7 per barrel," he said in an interview with Russia 1.

"If we talk about the cost of production at new fields, here the cost of production varies between $ 15-20 per barrel," the minister added.