OPEC+ held a meeting on 9 April to discuss the possibility of reducing oil production in order to stabilise the market.

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.

" I'd say at least 20m bpd in cuts are needed", Sitton said via Twitter.

The Texas Railroad Commission supervises the oil and gas industry, gas utilities, as well as surface uranium and coal mining.

Before the oil cut deal through OPEC platform on Friday, the US Energy Information Agency (EIA) said in a report that the United States based its latest oil price estimates on the assumption that the OPEC+ production agreement will not be implemented. In the report, the EIA estimated that Brent crude oil prices will average $33 per barrel in 2020, $10 per barrel lower than in last month’s outlook. April’s forecast, the report added, is subject to the heightened levels of uncertainty due to the coronavirus outbreak. 

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.

OPEC+ to Hold Online Meeting Later on Sunday – Azerbaijani Energy Ministry

The Organisation of the Petroleum Exporting Countries (OPEC) and non-cartel oil producers will hold their next meeting on the evening of Sunday via a video conference, the Azerbaijani Energy Ministry spokeswoman Zamina Aliyeva said.

"Today, at 20:00 Baku time [16:00 GMT], the OPEC+ ministers will meet online. The meeting is part of consultations on issues raised at the ninth meeting of OPEC-non-OPEC ministers. The meeting, chaired by Saudi Minister of Energy Prince Abdulaziz bin Salman and co-chaired by Russian Minister of Energy Alexander Novak, will be attended by the ministers of OPEC countries and non-OPEC countries that are party to the Declaration of Cooperation," Aliyeva said.

Earlier this week, G20 energy ministers discussed the possibility of reaching a new deal on oil output cuts. Prior to that, OPEC+ talks were held via video conference and resulted in the adoption of a new declaration which outlined a three-stage reduction of oil production. It was accepted by all states except Mexico. 

The OPEC+ deal involves 10 OPEC countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iraq, Kuwait, Nigeria, Saudi Arabia, and the United Arab Emirates. Three other OPEC members — Iran, Libya and Venezuela — have been exempted from production cuts due to sanctions. Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan are non-OPEC observer states in the deal.