No concrete strategy was formed in the G20 meeting on commodity / crude production cuts, only promise for the stability of the oil market, all the crude storage tanks will be filled in May

·      No sign of any definitive cut from fourth largest producer Canada

·      No comment on Mexico-US deal in G20 meeting

 The Economic News. Despite the efforts of US President Donald Trump to resolve disagreements with Mexico, a meeting of energy ministers of the G20 group on Friday did not reveal any concrete strategy to cut crude production. The manifesto released on Saturday showed an attempt to cover up the members' differences. The statement also said that the G-20 countries will hold the next meeting on the state of the oil market in September. But if necessary, a meeting can also be held before September. Also, the members only committed to the stability of the oil market. Earlier on Thursday, Mexico alone disagreed on a plan to cut record production at the OPEC Plus meeting.

Crude has fallen to 18-year low due to coronavirus and price wise

According to OPEC Plus's plan, member countries will cut oil production by 10 million barrels per day in May and June. Thereafter production cuts will be reduced in two phases by April 2022. Mexico's disagreement with the OPEC Plus plan brought the oil price reform plan under suspicion. Significantly, the price of oil had touched an 18-year low in the past due to reduced demand due to coronavirus and later price between Saudi Arabia and Russia.






No sign of consent in statement released after G20 meeting

After the OPEC Plus meeting on Friday, the G20 Energy Ministers' meeting was expected to agree on a slightly larger plan from OPEC Plus and Mexico, the US and Canada would also be involved in production cuts. But the statement released after the G20 meeting showed no sign of consent. The statement issued on Saturday said that we promise to ensure that the energy sector will continue to make its full and effective contribution in getting rid of Kovid-19 and then accelerating global economic growth. We pledge to take immediate and all necessary steps to ensure the stability of the energy market.






How much Canada will cut the world's fourth largest producer is also unclear

There is no indication of any definite reduction in oil production from Canada. Canada is the fourth largest producer of crude in the world. The OPEC Plus agreement expected a production cut of 4 million barrels a day from Mexico, but was rejected by Mexico. President of Mexico, Andrés Manuel López Obrador, said that he had an agreement with Trump to cut production by just 1 million barrels a day. He said that the US has agreed to cut production of 2.5 million barrels per day to compensate Mexico. The deal was later confirmed by Trump.






G20 meeting silent on Mexico-US deal

There was also no comment in the G-20 statement on the agreement between Mexico and the United States. OPEC Plus's production reduction plan will come into effect only after Mexico's consent. Under this plan, Saudi Arabia and Russia are going to cut production of 85 million barrels per day.






All crude storage tanks will be filled in May

OPEC Secretary General Muhammad Berkindo warned that by the end of May all storage tanks of crude will be fully filled due to the huge demand and excess supply. The future of the oil industry is visible in the dark....