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| Oil Markets Are a Mess. Can World Leaders Straighten Them Out? | Oil Markets Are a Mess. Can World Leaders Straighten Them Out? |
| (about 11 hours later) | |
| Usually it’s the world’s major oil-producing countries that step in when a big drop in prices roils the oil market. But these are not normal times. | Usually it’s the world’s major oil-producing countries that step in when a big drop in prices roils the oil market. But these are not normal times. |
| On Friday, a day after the Organization of the Petroleum Exporting Countries and other producers led by Russia are set to hold their own meeting, representatives of the Group of 20 wealthy nations are expected to hold a virtual conference to try to stem the recent plunge in energy prices. | On Friday, a day after the Organization of the Petroleum Exporting Countries and other producers led by Russia are set to hold their own meeting, representatives of the Group of 20 wealthy nations are expected to hold a virtual conference to try to stem the recent plunge in energy prices. |
| The volatile oil markets of recent weeks threaten to bankrupt energy companies across the world, causing enormous job losses and threatening financial institutions that have backed the industry. | The volatile oil markets of recent weeks threaten to bankrupt energy companies across the world, causing enormous job losses and threatening financial institutions that have backed the industry. |
| The pandemic has played a critical role in this drama, but there is also a lot of jockeying among the three oil superpowers: Saudi Arabia and Russia, two longtime petro-rivals, and the United States, whose rising prominence as an oil exporter has disrupted the industry. | The pandemic has played a critical role in this drama, but there is also a lot of jockeying among the three oil superpowers: Saudi Arabia and Russia, two longtime petro-rivals, and the United States, whose rising prominence as an oil exporter has disrupted the industry. |
| It is far from clear that the G20 meeting will calm volatile markets. The fact that the meeting is occurring, though, may signal the beginning of a very different approach that could be a first step in restoring confidence. | It is far from clear that the G20 meeting will calm volatile markets. The fact that the meeting is occurring, though, may signal the beginning of a very different approach that could be a first step in restoring confidence. |
| “A lot of countries, including those with strong free-market beliefs and credentials, seem to be coming over to the view that the global oil business needs to be managed to an extent, at least from time to time,” said Bhushan Bahree, an executive director at IHS Markit, a research firm. | “A lot of countries, including those with strong free-market beliefs and credentials, seem to be coming over to the view that the global oil business needs to be managed to an extent, at least from time to time,” said Bhushan Bahree, an executive director at IHS Markit, a research firm. |
| But are the United States, Russia and Saudi Arabia ready to agree? The unusual approach underscores the turmoil in the markets. | But are the United States, Russia and Saudi Arabia ready to agree? The unusual approach underscores the turmoil in the markets. |
| Demand for oil has evaporated as commercial aircraft are grounded, road traffic has been sharply reduced and about half the world’s population is under some sort of order to stay home to stop the spread of the coronavirus, which has killed over 82,000 people. | Demand for oil has evaporated as commercial aircraft are grounded, road traffic has been sharply reduced and about half the world’s population is under some sort of order to stay home to stop the spread of the coronavirus, which has killed over 82,000 people. |
| The world is using about 25 percent less oil than it typically does, a jarring collapse in an industry known for only gradual fluctuations in demand. | The world is using about 25 percent less oil than it typically does, a jarring collapse in an industry known for only gradual fluctuations in demand. |
| But fighting among some of the largest producers has aggravated the volatility. | But fighting among some of the largest producers has aggravated the volatility. |
| Instead of curtailing production to meet the reduced appetite for oil, the Saudis and allied producers ramped up output in a tiff with Moscow, as an agreement between Russia and OPEC on trimming output expired. | Instead of curtailing production to meet the reduced appetite for oil, the Saudis and allied producers ramped up output in a tiff with Moscow, as an agreement between Russia and OPEC on trimming output expired. |
| This helped drive prices even lower. West Texas Intermediate, the U.S. benchmark, scraped the $20-a-barrel level in late March. Some crude in the United States fell well below $10 a barrel. Prices at this level could prove catastrophic for the U.S. shale industry — a likely goal of Saudi and Russian oil producers. | This helped drive prices even lower. West Texas Intermediate, the U.S. benchmark, scraped the $20-a-barrel level in late March. Some crude in the United States fell well below $10 a barrel. Prices at this level could prove catastrophic for the U.S. shale industry — a likely goal of Saudi and Russian oil producers. |
| Faced with steep job losses in oil states like Texas and Oklahoma, President Trump is pressuring Saudi Arabia and Russia to end their feud. | Faced with steep job losses in oil states like Texas and Oklahoma, President Trump is pressuring Saudi Arabia and Russia to end their feud. |
| The Saudis, worried by the political pressure from the United States, are showing signs that they are willing to try to find a solution. | The Saudis, worried by the political pressure from the United States, are showing signs that they are willing to try to find a solution. |
| The Saudis are thinking, “We need to get the heat off of us in terms of U.S. anger,” said Robert McNally, a White House energy adviser in the George W. Bush administration. He added, “There is a risk of a rupture there that Riyadh cannot take too lightly.” | The Saudis are thinking, “We need to get the heat off of us in terms of U.S. anger,” said Robert McNally, a White House energy adviser in the George W. Bush administration. He added, “There is a risk of a rupture there that Riyadh cannot take too lightly.” |
| Oil analysts who track Saudi Arabia said the price war with Russia had been incited by frustration by Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler, with Russia for not abiding by previous agreements on output aimed at keeping prices up. | Oil analysts who track Saudi Arabia said the price war with Russia had been incited by frustration by Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler, with Russia for not abiding by previous agreements on output aimed at keeping prices up. |
| Prince Mohammed could have been looking for other benefits as well. In the long term, the kingdom realizes that its vast reserves of oil could lose value as concern about climate change spreads, so it wants to get as much from its reserves as possible to invest in other sectors. Prince Mohammed also wanted to chip away at the market share held by U.S. shale producers, whose production costs per barrel are much higher than Saudi Arabia’s. | Prince Mohammed could have been looking for other benefits as well. In the long term, the kingdom realizes that its vast reserves of oil could lose value as concern about climate change spreads, so it wants to get as much from its reserves as possible to invest in other sectors. Prince Mohammed also wanted to chip away at the market share held by U.S. shale producers, whose production costs per barrel are much higher than Saudi Arabia’s. |
| “They don’t mind if the U.S. industry goes somewhat down the drain, because that will cut some production, but they really want Russia to bend to their view,” said Jean-François Seznec, nonresident senior fellow at the Atlantic Council. | “They don’t mind if the U.S. industry goes somewhat down the drain, because that will cut some production, but they really want Russia to bend to their view,” said Jean-François Seznec, nonresident senior fellow at the Atlantic Council. |
| But in starting the price war by ramping up the kingdom’s own production, Prince Mohammed drastically underestimated how greatly the coronavirus pandemic would reduce demand. The move has caused consternation among other oil-producing nations, which has led Saudi Arabia to start looking for a new deal on production limits. | But in starting the price war by ramping up the kingdom’s own production, Prince Mohammed drastically underestimated how greatly the coronavirus pandemic would reduce demand. The move has caused consternation among other oil-producing nations, which has led Saudi Arabia to start looking for a new deal on production limits. |
| “Every oil producer in the world is howling about this,” said Jim Krane, an energy fellow at Rice University’s Baker Institute. | “Every oil producer in the world is howling about this,” said Jim Krane, an energy fellow at Rice University’s Baker Institute. |
| In addition, low prices are damaging the Saudi economy, reducing the crown prince’s resources as he pushes ambitious plans to diversify it away from oil. | In addition, low prices are damaging the Saudi economy, reducing the crown prince’s resources as he pushes ambitious plans to diversify it away from oil. |
| Still, if the Saudis do manage to persuade others to join in cuts, the pain may be worth it, from Riyadh’s point of view. | Still, if the Saudis do manage to persuade others to join in cuts, the pain may be worth it, from Riyadh’s point of view. |
| The Saudis will “have preserved the principle that everyone must honor their commitments,” said Helima Croft, analyst at RBC Capital Markets, an investment bank. | The Saudis will “have preserved the principle that everyone must honor their commitments,” said Helima Croft, analyst at RBC Capital Markets, an investment bank. |
| For years, Russia had been watching nervously as a surge in shale production turned the United States from a large oil importer to an increasingly important exporter. | For years, Russia had been watching nervously as a surge in shale production turned the United States from a large oil importer to an increasingly important exporter. |
| In the view of Russian nationalists, earlier production-cut agreements with OPEC helped Russia by lifting the global price of oil, a critical export, but also helped the U.S. shale oil industry. | In the view of Russian nationalists, earlier production-cut agreements with OPEC helped Russia by lifting the global price of oil, a critical export, but also helped the U.S. shale oil industry. |
| Last month, Russia dug in its heels, seemingly at the worst time for oil markets. At a meeting in Vienna on March 6, the energy minister, Aleksandr Novak, refused to go along with a Saudi request for deeper production cuts, and the two countries’ 2016 oil policy agreement unraveled. The rupture handed a victory to Igor I. Sechin, the head of the Russian state oil giant Rosneft, who had argued that price supports helped the Americans. | Last month, Russia dug in its heels, seemingly at the worst time for oil markets. At a meeting in Vienna on March 6, the energy minister, Aleksandr Novak, refused to go along with a Saudi request for deeper production cuts, and the two countries’ 2016 oil policy agreement unraveled. The rupture handed a victory to Igor I. Sechin, the head of the Russian state oil giant Rosneft, who had argued that price supports helped the Americans. |
| “Is there any point in cutting production in the future if other countries are going to increase?” Mr. Sechin asked in an interview with Russian state television as oil prices tumbled in late March. | “Is there any point in cutting production in the future if other countries are going to increase?” Mr. Sechin asked in an interview with Russian state television as oil prices tumbled in late March. |
| Russia’s relatively cheap production costs, he said, could also help it hold out in a price war with Saudi Arabia. | Russia’s relatively cheap production costs, he said, could also help it hold out in a price war with Saudi Arabia. |
| On the other hand, with prices having plummeted and some U.S. oil producers crying foul and willing to talk, Russian officials are at least showing an interest in going back to the table. On Friday, President Vladimir V. Putin said Russia was ready to resume cooperation with the Saudis and even to cooperate with the United States. But how much production Russia will agree to cut remains to be seen. | On the other hand, with prices having plummeted and some U.S. oil producers crying foul and willing to talk, Russian officials are at least showing an interest in going back to the table. On Friday, President Vladimir V. Putin said Russia was ready to resume cooperation with the Saudis and even to cooperate with the United States. But how much production Russia will agree to cut remains to be seen. |
| Updated June 16, 2020 | Updated June 16, 2020 |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| It is hard to see how a global solution can be reached without the United States, now a top-three oil power. | It is hard to see how a global solution can be reached without the United States, now a top-three oil power. |
| American producers and the Trump administration share a goal: balance the market to stabilize oil prices and save the industry from a rash of bankruptcies and the potential loss of more than 100,000 jobs. But there is little common ground on how to do that beyond industry support for Mr. Trump’s jawboning of Saudi Arabia and Russia to cut production by 10 million barrels or more. | American producers and the Trump administration share a goal: balance the market to stabilize oil prices and save the industry from a rash of bankruptcies and the potential loss of more than 100,000 jobs. But there is little common ground on how to do that beyond industry support for Mr. Trump’s jawboning of Saudi Arabia and Russia to cut production by 10 million barrels or more. |
| Mr. Trump has long been a critic of OPEC and a cheerleader for lower gasoline prices. Now faced with suggestions of U.S. coordination with OPEC, he has signaled resistance to forcing American companies to drop production. A few, however, seek some form of coordination. | Mr. Trump has long been a critic of OPEC and a cheerleader for lower gasoline prices. Now faced with suggestions of U.S. coordination with OPEC, he has signaled resistance to forcing American companies to drop production. A few, however, seek some form of coordination. |
| Pioneer Natural Resources and Parsley Energy, two medium-size Texas oil companies, are calling on the Texas Railroad Commission, the state oil and gas regulator, to mandate large production cuts across the state, which is by far the biggest U.S. producer. The commission plans a hearing on the proposed cuts on Tuesday and a vote on the proposal a week later, well after OPEC and its associate countries meet on Thursday. Only one of the three commissioners has voiced support for the measure, which Exxon Mobil and other large producers oppose. | Pioneer Natural Resources and Parsley Energy, two medium-size Texas oil companies, are calling on the Texas Railroad Commission, the state oil and gas regulator, to mandate large production cuts across the state, which is by far the biggest U.S. producer. The commission plans a hearing on the proposed cuts on Tuesday and a vote on the proposal a week later, well after OPEC and its associate countries meet on Thursday. Only one of the three commissioners has voiced support for the measure, which Exxon Mobil and other large producers oppose. |
| “The industry is totally at odds with each other,” said Scott Sheffield, Pioneer Natural Resource’s chief executive. | “The industry is totally at odds with each other,” said Scott Sheffield, Pioneer Natural Resource’s chief executive. |
| Mike Sommers, president of the American Petroleum Institute, the main industry lobbying group, said oil companies opposed tariffs on Saudi and Russian oil — a suggestion from some Republicans in Congress — as an infringement on free enterprise and free trade. On the other hand, Mr. Sommers said that the current glut was “80 percent a demand issue related to the coronavirus,” and that American production would naturally decline as producers cut investments in exploration and production. | Mike Sommers, president of the American Petroleum Institute, the main industry lobbying group, said oil companies opposed tariffs on Saudi and Russian oil — a suggestion from some Republicans in Congress — as an infringement on free enterprise and free trade. On the other hand, Mr. Sommers said that the current glut was “80 percent a demand issue related to the coronavirus,” and that American production would naturally decline as producers cut investments in exploration and production. |
| “Already production is being hemmed in, and I would suspect a lot more is going to be,” he added. | “Already production is being hemmed in, and I would suspect a lot more is going to be,” he added. |
| Analysts say producing countries are working toward an announcement of cuts on the order of 10 million to 15 million barrels a day. | Analysts say producing countries are working toward an announcement of cuts on the order of 10 million to 15 million barrels a day. |
| Just where such cuts would come from is likely to be the subject of difficult negotiations. | Just where such cuts would come from is likely to be the subject of difficult negotiations. |
| Relatively straightforward trims might be found among OPEC’s members and affiliate countries. In the United States, although coordinated cuts would be unlikely, production might decline through slower drilling and planned shutdowns. | Relatively straightforward trims might be found among OPEC’s members and affiliate countries. In the United States, although coordinated cuts would be unlikely, production might decline through slower drilling and planned shutdowns. |
| American oil production between January and March declined by 300,000 barrels a day to 13 million barrels, according to Energy Department estimates, and will fall by two million barrels more by the end of the year. | American oil production between January and March declined by 300,000 barrels a day to 13 million barrels, according to Energy Department estimates, and will fall by two million barrels more by the end of the year. |
| But that may not be enough for Russia, Saudi Arabia and its OPEC allies. On Wednesday, a Kremlin spokesman said natural declines in the United States should not count as cuts. | But that may not be enough for Russia, Saudi Arabia and its OPEC allies. On Wednesday, a Kremlin spokesman said natural declines in the United States should not count as cuts. |
| The cuts being discussed would probably make only a modest dent in the oversupply that is filling up global oil tanks and tankers at sea. Even a cut of up to 15 million barrels “will only be enough to scratch the surface,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy, a Norwegian consultancy. | The cuts being discussed would probably make only a modest dent in the oversupply that is filling up global oil tanks and tankers at sea. Even a cut of up to 15 million barrels “will only be enough to scratch the surface,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy, a Norwegian consultancy. |
| He added that oil storage “could fill within 30 days” and cause sudden shutdowns in production from Canada to Asia. | He added that oil storage “could fill within 30 days” and cause sudden shutdowns in production from Canada to Asia. |
| On the other hand, while few analysts expect announcements of sufficiently large and verifiable production trims to head off the glut, the burst of activity has bolstered prices and lightened the gloomy mood in the markets. | On the other hand, while few analysts expect announcements of sufficiently large and verifiable production trims to head off the glut, the burst of activity has bolstered prices and lightened the gloomy mood in the markets. |
| “The fact that this meeting is coming together in such a difficult geopolitical context is a good signal, “ said Fatih Birol, executive director of the International Energy Agency, a Paris-based watchdog. | “The fact that this meeting is coming together in such a difficult geopolitical context is a good signal, “ said Fatih Birol, executive director of the International Energy Agency, a Paris-based watchdog. |
| David D. Kirkpatrick contributed reporting. | David D. Kirkpatrick contributed reporting. |