Oct 18, 2017

OPEC and allies leaning toward extending oil supply cut

An oil pump in the desert oil fields of Sakhir, Bahrain. Photo: Hasan Jamali / AP

The Organization of the Petroleum Exporting Countries (OPEC), along with 10 other countries including Russia, are leaning towards extending an oil supply cut for another nine months, according to a Reuters report.

Why it matters: The deal, which was extended previously in May, planned to cut oil supply by around 1.8 million barrels daily until early 2018 in order to return oil stock levels to the five year average, which has not yet been accomplished. The purpose is to raise global prices, which have taken a hit due to excess supply.

What to watch for next: OPEC and allies could meet in early 2018 if a decision isn't reached this November, Reuters reports.

Go deeper

The oil stakes of Trump vs. Biden

Reproduced from Rapidan Energy Group; Chart: Axios Visuals

U.S. oil production is in a steep decline, but one question is how much November's elections will affect how much it does — or doesn't — bounce back.

Why it matters: The powerful price and demand headwinds from the coronavirus pandemic are creating a financial crisis in the oil patch.

The top stories from "Axios on HBO"

From last night's episode:

A closer look at how colleges can reopen

The campus of Brown University. Photo: Lane Turner/The Boston Globe via Getty Images

Masks in class, sports on hold, dorm life without roommates and summer 2021 classes for some: Brown University President Christina Paxson tells "Axios on HBO" it's all in play as colleges consider whether and how to safely reopen campuses in the fall.

Why it matters: An extended shutdown of U.S. colleges and universities would leave nearly 20 million students and 3 million employees with an uncertain future, but premature reopenings without proper coronavirus safeguards could jeopardize lives and force more closings.