An end to the global price between Russia and OPEC appears to be on the horizon, but with coronavirus destroying more than a quarter of world demand for oil, the markets remain uncertain that the deal is good enough to bring salvation to struggling energy markets.
"The deal is inadequate and the market has rejected it," Dan Eberhart, CEO of Bakken-based Canary, told the Williston Herald. "The Bakken is a high-cost play, and this downturn is going to be very, very painful for the Bakken."
Others felt that any deal was better than no deal, and hoped for pent-up demand once the coronavirus pandemic is over.
"At this stage every dollar matters, so getting the Saudis to back off dumping this oil is a great step," North Dakota Petroleum Council President Ron Ness told the Williston Herald. "We need to get the economy rolling and demand restored to ensure we can keep producing. The second quarter looks brutal for oil markets. Once we get through this covid challenge let's hope for surging demand."
Fracn8r Monte Besler, an oil and gas industry consultant in the Bakken, suggested that a deal could at least help provide some stability in the short run.