Oil Prices Tank Despite 10 Million Barrel Per Day Production Cut

OPEC++ may have reached today a commitment to cut 10 million bpd of oil production in both May and June, but oil prices reacted poorly to the largest production cut in OPEC’s history, as it had hoped for a larger cut. The market, which is acutely aware that the demand destruction is somewhere near 30 million barrels per day due to the coronavirus pandemic, fell in Thursday afternoon trading. The WTI benchmark had fallen 6.10% by 3:45pm EDT, to $23.56. The Brent benchmark fell a more moderate 2.5% to reach $32.02 per barrel. OPEC and its extended…