Saudi Arabia, the world's largest oil exporter which holds the G20 presidency this year, is hosting a virtual meeting of energy ministers on Friday.
We take a look at what this entails for crude importers and exporters as oil prices continue to remain depressed in spite of Opec+ reaching an agreement on output restrictions.
Who comprises the G20?
The Group of 20 comprises 19 developing and developed economies as well as the European Union. The members of this group, apart from the EU are Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, Mexico, the Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, the UK and the US.
Why are they meeting today?
Energy ministers from the G20 as well as countries who include key exporters and importers of oil as well as regional and international organisations will gather to consider measures "to alleviate the impact of the Covid-19 pandemic on the energy markets".
Oil prices have fallen to 70 per cent of their value from their most recent peak in January.
The collapse in oil prices due to the demand crunch from the spread of the coronavirus pandemic as well as the collapse of Opec+ talks in March has led to refineries shutting down and thousands of jobs being lost in the energy industry.
Where are they meeting?
Saudi Arabia, which holds the presidency of the G20 this year will host a virtual meeting of energy ministers at 3pm local time.
Is this a follow-up to the Opec+ meeting?
No. Opec+ gathered virtually on Thursday and agreed to cut production by a record 10 million barrels per day starting in May for two months. However, Mexico opposed its quota of cuts leaving the deal in limbo. The producers cannot greenlight the curbs without Mexico's approval and have no plans to re-convene until June. However, Mexico is part of the G20 and its reluctance to be part of the restrictions could come up in today's meeting.
Will there be some sort of agreement?
Following Mexico's walkout from the Opec+ meeting, US President Donald Trump spoke to Saudi Arabia's King Salman and Russian President Vladimir Putin. Mr Trump later said in a press conference that he expects Opec to announce a deal perhaps on Friday.
What is the significance of US participation in this meeting?
The US has never been a part of any kind of talks involving changes to its supply and demand. The US energy industry, which is made up of thousands of independent producers is not represented by a single voice as it lacks state-backed entities, unlike most Opec+ producers. While Mr Trump has been instrumental in bringing Russia and Saudi Arabia back to the negotiating table after the collapse of the earlier deal in March, he has been non-committal about the US' role, leaving supply and demand instead to market forces.
So what can the US do?
US energy secretary Dan Brouillette told Bloomberg TV on Thursday that he expected to talk about measures to stabilise economies hurt by the virus pandemic and the rout in the oil markets. He also said there would be a 'trilateral' discussion with Canada and Mexico, who are members of the USMCA, which replaced the North American Free Trade Agreement under the Trump administration.
What other actions can we expect?
Fatih Birol, the executive director of the International Energy Organisation expected some of the importers of oil to also step up and announce purchases of crude to to build up their strategic petroleum reserves in order to support demand. As the G20 also comprises key oil importers, we expect some sort of action from them to support demand, which is expected contract by 12m bpd in the second quarter according to Opec.
