Weekly data show US production down by 1.6 million barrels a day, or 12 per cent, in two months. In Canada, production in Alberta has fallen by a quarter, or 1 million barrels a day.Things are definitely moving in the right direction, but the question is how producers should respond. Saudi Arabia and its neighbors decided earlier this month to make additional output cuts in June, beyond those already agreed. A challenge for Opec+ is that it has every right to do so. After April’s hard-won deal, it’s up to the Opec+ group to make sure it's not a short-lived success story now that the imminent threat of collapsing oil prices has receded.

Source: Economic Times May 31, 2020 06:00 UTC