Commodities Corner: Here’s OPEC+’s plan to save the oil the market

Commodities Corner: Here’s OPEC+’s plan to save the oil the market

The reductions would then be eased to 8 million barrels per day from July 1 through Dec. 31, followed by 6 million barrels in cuts from Jan. 1, 2021 to April 30, 2022.. "The plan might be enough to prevent a further price collapse, but not enough to ignite a rally," said Marshall Steeves, energy markets analyst at IHS Markit.. The baseline for the cuts would be oil production in October 2018, except for Saudi Arabia and Russia, which will each cut from a baseline of 11 million barrels per day.. Mexico has reportedly not agreed to the plan and wants to lessen its share of production cuts.. Judging by the reaction of oil prices in the wake of initial reports of a 10 million barrel-per-day cut, which were published before oil futures settled Thursday , traders and analysts weren't impressed.. Obrador said President Donald Trump late Thursday in phone call committed to cut U.S. output by an additional 250,000 barrels per day to compensate for Mexico.. Trump has expressed worries that the drop in demand for oil, which has pulled U.S. benchmark prices down by nearly 63% year to date, will lead to further woes for U.S.