U.S. Exploration & Production Companies (E&Ps) continue to adjust to the significant crude oil supply overhang resulting from COVID-19 and the oil price war. During the month a significant milestone was achieved with U.S. President Trump brokering an international agreement to cut back global oil supply in collaboration with Saudi Arabia, Russia, and other oil-producing nations. Unfortunately, the agreement in principle will have a limited impact to the over-supply situation in the second quarter of 2020, but it does raise the prospects that global oil supply will be lower in the second half of 2020 and in 2021.
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