After historic cut, oil producers pin hopes on unprecedented stocks purchases

The field centre of the Johan Sverdrup oil field in the North Sea west of Stavanger, Norway. (AFP)

An unprecedented deal by oil producers to curb supply to match demand hollowed out by the coronavirus pandemic is set to depend partly on purchases by consumer countries for their strategic stocks on a scale not before seen.

The Organization of the Petroleum Exporting Countries (OPEC) along with Russia and other producing countries - a grouping known as OPEC+ - partnered with other oil-pumping powerhouses like the United States for an agreement set to remove a total of around 19.5 million barrels per day (bpd) from the market.

Officials and sources from OPEC+ states indicated the International Energy Agency (IEA), the energy watchdog for the world's most industrialized nations, may announce purchases of up to several million bpd to buoy the deal.

But the IEA has never before performed a coordinated stocks purchase and has no effective mandate to do so, said two industry sources familiar with the process.

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Last Update: Tuesday, 14 April 2020 KSA 17:50 - GMT 14:50
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