The United States will cut its oil production by at least four million barrels per day (bpd) over the next three months, Texas Railroad Commissioner Ryan Sitton said in a statement on Wednesday.
"I'm not participating in the OPEC+ call [tomorrow], but if I were I'd say at least 20m bpd in cuts are needed", Sitton said via Twitter.
I'm not participating in the OPEC+ call tmrw but if I were I'd say at least 20mbpd in cuts are needed & the US will cut at least 4mbpd in next 3 mos organically. If nothing is done inventories fill up in 2mos, at which point the world will need to cut as much as 30mbpd. #OOTT— ryansitton (@RyanSitton) April 8, 2020
The Texas Railroad Commission supervises the oil and gas industry, gas utilities, as well as surface uranium and coal mining.
In early March, the OPEC+ member states' discussions on the matter failed as the participants did not reach a consensus on either Russia's proposal to simply extend the OPEC + deal to make a more balanced decision later or on the idea of Saudi Arabia deepening production cuts by 1.5 million barrels per day. As a result, restrictions on crude production have been lifted since 1 April. Together with the impact of the COVID-19 pandemic, it has led to a significant drop in crude prices over the past several weeks.