The world’s leading oil-producing nations agreed this week on historical production cuts, ending the infamous Oil Price War, reports E&E News. Russia and the OPEC will cut production by 9.7 million barrels a day, while the U.S. will work with the Group of 20 industrialized nations to negotiate cuts.
However, oil analysts fear that the damage has already been done to the U.S. oil industry, noting that we may not have seen the bottom for oil prices.
“Oil prices are going to stay low and there’s nothing the administration can do to bring oil prices up to acceptable levels for U.S. producers because of the level of demand destruction.”