So we’ve got a more a more official move towards a possible deal or cooperation in the oil markets. Again this is early and it’s tough tough to say if anything will come of it, but the fact that Putin is stepping in here on the side of a potential deal bodes well. It’s also been speculated that half of the reason that Russia nixed the prior deal in the first place was because of US sanctions, so that’s something that might come up again.
These are slow steps and today was another big day down for oil, but hopefully this is a beginning of a new deal to help cut production until the worst of the virus passes.
I think it’s unlikely the market ends up totally balance here but the chances of avoid production hikes and getting some cuts seem to be a bit better than they were after the last OPEC+ deal fell apart.