Tags: dan brouillette | energy | oil | price | production

Energy Secretary Brouillette: Oil Producers Will Drop Production

Energy Secretary Dan Brouillette is shown
Energy Secretary Dan Brouillette (Jon Gambrell/AP)

By    |   Thursday, 09 April 2020 01:07 PM

Energy Secretary Dan Brouillette told CNBC’s “Squawk Box” on Thursday that he expects oil producers to lower production after the coronavirus outbreak caused demand for oil to drop and prices to fall to the lowest level in almost 20 years.

“I think they can easily get to 10 million, perhaps even higher. And certainly higher if you include the other nations who produce oil, nations like Canada, Brazil and others, it’s easily, easily done,” Brouillette said.

The price of oil has dropped steadily as the coronavirus crisis causes demand for oil to drop drastically. The Organization of Petroleum Exporting Countries on Thursday reached an agreement in principle to lower production by 10 million barrels per day.

“It's important to remember that whether they reach a formal agreement or not, everyone is going to reduce production as long as we have this demand curve being what it is. There is simply no other choice,” Brouillette said on CNBC

“When you produce oil, you have two options,” he added. “You can either use it as part of the demand, or you can store it, and storage is running out. So I mean, at some point, everyone is going production until we turn the economy back on.”

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Energy Secretary Dan Brouillette told CNBC’s “Squawk Box” on Thursday that he expects oil producers to lower production after the coronavirus outbreak caused demand for oil to drop and prices to fall to the lowest level in almost 20 years.
dan brouillette, energy, oil, price, production
204
2020-07-09
Thursday, 09 April 2020 01:07 PM
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