A resurgence of coronavirus cases will have 'major consequences' for the oil market, IEA warns

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It comes after what the IEA Executive Director Fatih Birol described as 'Black April.'

It comes after what the IEA Executive Director Fatih Birol described as "Black April," when the price of U.S. crude futures tumbled to around negative $40 a barrel.

"The biggest is whether governments can ease the lockdown measures without sparking a resurgence of Covid-19 outbreaks," the Paris-based energy agency added.and its non-OPEC allies, sometimes referred to as OPEC+, would achieve a high level of compliance with its agreed output cuts. It comes after OPEC+ agreed to curb production by a record 9.7 million b/d in May and June. OPEC kingpin Saudi Arabia has since said it plans to cut output by an additional 1 million b/d to 7.5 million b/d in June.

The IEA said output cuts from countries outside the OPEC+ agreement, such as the U.S. and Canada, meant output was 3 million b/d lower in April than at the start of the year. The group said it could be 4 million b/d lower in June, "with perhaps more to come."A global public health crisis has meant countries across the globe have effectively had to shut down, with many governments imposing draconian restrictions on the daily lives of billions of people.

 

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Be ready, the way the U.S. is acting, we will have a second wave for sure.

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