RESTORING OIL DEMAND

PLATTS - 01 Jun 2020 - US President Donald Trump and Russian President Vladimir Putin spoke June 1 about the importance of implementing the OPEC+ oil supply cuts and stabilizing global oil prices, the Kremlin said in a statement.

The statement did not appear to move oil prices. At 1713 GMT, ICE August Brent was up 21 cents at $38.05/b while NYMEX July WTI was 39 cents lower at $35.10/b.

"The presidents addressed world oil market developments in the context of implementing the OPEC+ agreement," the Kremlin said. "It was stated that this multilateral agreement, reached with the active support of the presidents of Russia and the United States, would lead to a gradual restoration of oil demand and price stabilisation."

The White House plans to release a readout of the call shortly, a spokesman said.

OPEC and its allies could meet as soon as this week to decide on the future of their 9.7 million b/d production cut agreement – the biggest coordinated supply accord in the oil market's history. The cuts are scheduled to roll back to 7.7 million b/d on July 1 for the rest of the year, but some members are pushing to extend current quotas for at least a few more months.

The OPEC+ alliance is scheduled to meet June 9-10 via webinar to discuss the deal, but ministers are in discussion to push the meeting forward to June 4. As of June 1, no meeting date has been confirmed.

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