...A. Highlights: Market dislocations caused by the global response to COVID-19 pandemic have been unprecedented. 1. a. Impact on the energy industry is even more extreme due to rapid demand destruction for crude oil and resulting massive inventory builds across the globe that have resulted. i. Partially cushioning this very negative industry backdrop is agreement reached at OPEC-plus summit earlier this month, whereby short-term and long-term supply cuts were agreed to. ii. Announced duration for short-term cuts totaling 10m barrels per day, extend for two months through May and June. iii. This is single largest coordinated output cut in history, but nonetheless it falls far short of estimated 25-30m barrels per day of demand destruction. iv. Importantly, longer-term cuts extend to April 2022, with supply reductions compressing over extended term. v. Given duration of cuts, industry should be able to better manage through unprecedented crude oil demand destruction, once Co. gets beyond immediate...
