OREANDA-NEWS. The countries of the OPEC+ alliance, which together control about 40% of world oil production, will reduce it by almost 10 million bps from May 1 to avoid collapse in the oil market. The volume of restrictions is unprecedented - each country in the agreement, including Russia, "donates" about 20% of production during May-June.

The pandemic caused the strongest drop in energy consumption in the world in history. According to the International Energy Agency (IEA), oil demand in April will fall by 29 million b/d, and on average in the second quarter - by 23 million b/d. The accumulated gigantic oversupply of oil can fill all the world’s existing storage facilities in May, if urgent measures are not taken, OPEC warned. The pressure of Brent oil under the pressure of these factors fell to $ 20 per barrel, and, according to analysts, could test the level of $ 10 in the absence of positive news.

According to the IEA, the total contribution of oil exporters that are not members of OPEC+ to the reduction in production may be no more than 2.5 million b/d. Thus, even the overall efforts of large oil producers will not be enough to fully cover the imbalance of supply and demand in the second quarter.