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OPEC+ along with Non-OPEC+ members came to a historic agreement over the weekend to attempt to save off further collapse in the energy market, strategists at TD Securities apprise.

Key quotes 

“OPEC+ agreed to cut some 9.7m bpd through May-June, 8m bpd from July-Dec, and 6m bpd from Jan 2021-April 2022, and the cuts could well be bigger than the headline numbers as some nations’ production numbers currently stand above benchmarked levels.” 

“NonOPEC+ nations will participate mainly symbolically, via market-driven cuts which could very well grow to nearly 4m bpd from countries such as the US, Canada, Brazil and Norway, and with reserve purchases via the US and also the IEA.” 

“We expect a long road to recovery, as the large Q2 surplus will translate to a large inventory overhang which will take time to work through.”