08:36 GMT29 November 2020
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    WASHINGTON (Sputnik) - The Texas Railroad Commission said in a notice on Tuesday that it will hold a vote on 5 May to decide on whether to require oil producers in the state to cut oil production by 20 percent.

    "This draft order, or an order substantially similar, may be discussed and voted on by the Commission at its 5th May 2020 Commissioners' Conference", the notice said.

    Last week, Commissioner Ryan Sitton proposed having a final vote on oil production cuts in Texas in response to the poor market conditions caused by novel coronavirus pandemic. At the time, Sitton proposed cutting oil production by 20 percent starting on 1 June if another 4 million barrels per day is cut by producers in other US states as well as Canadian and OPEC-plus producers.

    However, Commissioner Christi Craddick and Chairman Wayne Christian suggested they wait for a final decision until they have consulted with the Commission's legal team and Texas Attorney General Ken Paxton to ensure any action taken on proration is on solid legal grounds.

    The COVID-19 crisis has shattered the demand for oil in the United States, with much of the nation subject to stay-at-home orders and roads nearly devoid of traffic. That, combined with a failure of the OPEC+ talks in April to reduce output, has produced an unprecedented glut that exceeds the storage capacity in many countries.

    Tags:
    Texas, oil production, United States
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