he is fatih birol. and we areo him thrilled he could join us to talk about this historic moment for oil. what would you expect will be the institutional response over the next 48 hours, to oil? do we see opec plus plus? is it every opec member for themselves or do you have an original iea formation? for having me. , indeed.opments we talked last week and said this month will go in the apple and the black that is what i think we are seeing now. opportunities that we can still look into in order to address the problem. think it countries, i may be a good idea that those countries who made an announcement they will cut production may well reduce their production as soon as possible without waiting for the first of may, and may even consider further cuts to what they have announced. this may be one option we have in front of us. another option could be, as some countries we have suggested, to buy oil to put in their reserves. i imagine the u.s., for example, anda, and other countries, this morning i woke up

up next, we are going to be speaking with fatih birol, iea executive director. this is bloomberg. guy: welcome back. you're watching the european close here on "bloomberg markets ." let's check the bloomberg first word news. here with the details, ritika gupta. ritika: the price of oil is surging today. opec-plus has scheduled an urgent meeting to try to end the market collapse. russia has signaled they are cuty to agree to an output with saudi arabia. they will hold a video conference monday. in spain, the death rate from the coronavirus has declined for the first time in four days. the spanish reported 932 fatalities from the disease in the last 24 hours. the death toll there is approaching 11,000. it's been one week since british prime minister boris johnson tested positive for coronavirus. he still has a high temperature and remains in isolation. he appeared on his doorstep last night to purchase paid in a miss round of applause for health-care workers. after being stranded at sea for three weeks, passengers on a carnival cruise ship that was refused entry by multiple countrie

rishaad: the historic collapses of prices this month has got the international energy agency --ector fatih birols month may very well go in the history of oil industry as the black april. black april is what we are seeing now. there is some opportunity this the still to look into problem. countries.-plus it may be a good idea that those countries who made an announcement that they are going to cut production may well reduce their production as soon as possible without waiting may and 1 -- first of may consider cuts. this is one option we have in front of us. , in someption could be countries we have suggested to buy oil reserves. i mentioned the u.s., china. this morning i woke up with the good news that the australian government has decided to take advantage of the record oil prices to build up its oil stock reserves. u.s. dollars. this may be another option to put it on the table. those countries can cut the production now without waiting for the first of may. >> the president has a certain politically, domestically has huge support from the states that make up energy america. what, for you, i

but the head of the iea, fatih birol, adds...ea of the scale of the hit to the us economy, let's take a look at the food supply there. this is an aerial photograph of a queue for a food bank in san antonio, texas, two weeks ago. at that time, unemployment benefit claims were about to rise above 20 million. and think about it, they are now 30 million. and this is a picture of a mountain of potatoes in idaho, taken a week ago. idaho is a major potato producing state and the places that would normally be buying them — restaurants and stadiums, for instance — are closed. so farmers are abondoning their crops because they have no one to sell to. and the us is the largest economy in the world — it has huge resources to stop people going hungry. stephanie heggarty has been looking at places where that isn't the case. food is not something that these people used to worry about. this pandemic does not treat everyone equally. when you are living on a daily wage, being out of work means no money for food. these are not animals, these are an

that was fatih birol speaking to bloomberg earlier this morning.s jamie webster, bcg center for energy impacts senior director. we will start with opec-plus. let's pretend we see a deeper, faster cut from opec+. does any of that actually help? jamie: as long as we get it really fast, we needed immediately. obviously the cut, as indicated by the market, is not sufficient. our view is you probably need to double that, given that demand is still down around 20 million barrels a day. that is what the number was for april. there's no indication that it is going to improve once we get to may. you don't see any countries quickie looking to come back to a normal economic stance. understand why politically, saudi arabia and russia might not want to cut right away, but u.s. companies, there has to be some serious pain happening at the wellhead. why are we not seeing the flips switch off factor here in the u.s.? that oncere's a view you get beyond operating costs, these companies will immediately shut down. there's concern about damaging the fields, the fact

toasked the same question fatih birol yesterday.ompanies to the way the system works? 2016 there 2015 and was a chance at could have been systemic and that is why oil prices were driving asset values , but even then it was not as big as the mortgage crisis in terms of banks' exposure to the sector and the exposure of the high-yield market. this is banks, high yield, all of it had shrank tremendously. if you look at the share of energy in the s&p, i will quote somebody else but i heard it is 2.5% now. that it isling you marginalized itself to be almost irrelevant to the rest of the economy because of damage, poor returns. i don't think there is a systemic issue, just given the size of these market. they are much smaller than they were in 2015 and 2016. francine: thank you so much, jeff currie of goldman sachs with good insight into what could happen next. we will have plenty more on your markets. wti,ok at the picture of rising to about $15 a barrel after president trump warned iran on their ships. european stocks fluctuating, invest

a director fatih birol not optimistic on the global demand front.g in phil streible of blue line futures for more. we saw huge upside in inventories once again today, pushing oil to $19 plus a barrel. where does this end? phil: the case for single-digit crude oil is building. storage is rapidly filling up. demand is at record lows. factors are closed. [indiscernible] so single-digit crude oil already exists if you look at canadian, to bti midlands. game changer is how demand will increase when the lockdown ends. the two things you have to look at is will we open up by region, like china? if we do, you will see a snapback pretty quickly. sector, itned by is going to be a slow, steady ride for oil. vonnie: it is hard to imagine it 19ht now when you see the million build in inventories. bel: we are not going to able to work this out until the lockdown is done. upe we open up, if we open country by country, you will see transportation pickup, demand from the airlines, people filling up their gas. i haven't filled up a gas tank in two months now. but if

director fatty biroll -- director fatih urging countries to consider further cuts. here?t strikes me that it is too late if you want current prices to go higher, and at this point, any amount of production cuts won't make that much of a difference, so what is thought irolarrel -- what is fatih b trying to do? >> ultimately, market forces are taking hold here, you are seeing what was the result of manipulated markets in the last few years. going to be a is supply issue. i think they are trying to change that tone in terms of encouraging producers to evaluate the amount of supply they continue to pump into the markets. the eia reportt that just came out about tournament's ago, we are seeing a nice pop in wti and brent as a reaction to that report. vonnie: we had a 15 million barrel build, 1.5 million barrels down the estimate. how many millions of barrels can we dig out of the ground and still hold onto? dan: that is what the market is trying to figure out. historically, some of the biggest rallies occur during bear markets. you are going to continue to probably see this vo

part of what we heard was from fatih birol of the iea talking about how bad demand would be, despite any production deal. annmarie: some seriously drastic headlines out of the iea. the other part is what they are talking about what this means for storage. it is testing the logistic capacity to the limit. on the demand side, they see april serious demand destruction, down 29 million barrels a day. for the year, what that means is 9.3 million barrels a day, the worst we have ever seen on record in terms of demand. what the opec+ cuts probably did was maybe pull us back a little bit from the brink, but not doing that much. you can see that with what is talking about in storage. they say that could be exhausted by the middle of the year. all of this putting downward pressure on the future prices. wti falling below $20 a barrel. the physical market as well. on top of that, in the macroenvironment, all of this is deflationary. also, what this mentions -- also, the iea mentions what this means for the industry. alix: -- still a demand issue. annmarie: they talked about slashing their upstre