The chairman of the Texas Railroad Commission, Wayne Christian, announced that he opposes potential government-mandated oil production cuts that have been proposed amid a historical price collapse, reports S&P Global Platts.
Supply curbs have not been imposed on Texas oil-producers since 1972, but some U.S. shale producers have called for cuts to prevent more damage to the global oil market as COVID-19 wrecks oil demand and the oil price war continues between Saudi Arabia and Russia.
Another commissioner, Ryan Sitton, has been pushing for production cuts. According to S&P Global Platts, Sitton has been working closely with OPEC Secretary General Mohammed Barkindo to negotiate an internationally coordinated production cut. Sitton claims that coordinating with Saudi Arabia and Russia to scale back production could help bring the oil market back to pre-crisis level.
However, some analysts caution against Sitton’s proposal.
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