HealthCoronavirus

Actions

OPEC Says Demand For Oil Could Hit 30-Year Low

Twenty-three countries have agreed to reduce oil production, but some members of Congress are skeptical everyone will follow through.
Posted at 2:52 PM, Apr 17, 2020

Oil prices have plummeted as the world sits at home amid the coronavirus pandemic. The Organization of the Petroleum Exporting Countries, commonly known as OPEC, is forecasting the lowest demand in three decades. 

In its monthly oil market report, OPEC said, “The oil market is currently undergoing historic shock that is abrupt, extreme and at global scale." Twenty-three countries have come to an agreement: They will limit their oil production to 9.7 million barrels per day. 

At a time when all other countries were scaling back, Saudi Arabia and Russia chose to ramp up production. Paolo von Schirach, president of the Global Policy Institute, says the deal may be too little, too late to save American oil companies. 

Saudi Arabia's energy minister said Wednesday the country is not trying to put the American shale industry out of business.

Sen. Kevin Cramer of North Dakota isn't buying it. He recognizes larger companies may acquire smaller ones to stay afloat.

The Republican senator says the deal is better than nothing. But both say that Saudis agreeing to a deal and complying with it are two very different things. Even with the deal, he hasn't reversed course and wants either Congress to pass his bill or the president to remove troops on his own.