Daily News Brief
April 13, 2020
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Top of the Agenda
Oil Producers Agree to Historic Cuts in Deal to End Price War
Oil-producing nations agreed to cut production in May and June by a combined 9.7 million barrels per day (NYT), almost 10 percent of global supply, to end a price war that began early last month. Though the cuts are the largest ever negotiated, they fall short of the 35 percent drop in global demand caused by the coronavirus pandemic.

Though the Organization of the Petroleum Exporting Countries (OPEC) and its allies will be responsible for the cuts, negotiations included oil ministers from Group of Twenty (G20) countries and a prominent role for Washington, which supported Mexico’s successful bid (FT) to lower output by less than originally proposed. G20 countries, including the United States, reportedly plan to reduce their output by around five million more barrels (Bloomberg) as demand drops, but have made no firm commitments to do so.
Analysis
“Hopefully, the American oil industry has avoided a worst-case scenario,” CFR’s Amy Myers Jaffe told the New York Times. “There still will be bankruptcies, but for the time being, the fears that there would be a wholesale destruction of the industry can now be put aside, because the worst of the price war has passed.” 

“How big an impact coordinated cuts will have in practice remains a major outstanding question for oil markets. For one, how the US’ inaugural participation in cuts will work remains to be seen,” Amena Bakr, Oliver Klaus, and Casey Merriman write for Energy Intelligence.

Pacific Rim
North Korea Reshuffles Top Leadership Commission
North Korea’s leader, Kim Jong-un, replaced (Al Jazeera) more than a third of the country’s State Affairs Commission, according to state media. His sister Kim Yo-jong was reinstated (Bloomberg) to a position in the Politburo.
 
China: Digital publications on the origin of the novel coronavirus were taken down for additional vetting by government officials, suggesting that Beijing is screening coronavirus research, the Guardian reports.
 
In Foreign Affairs, CFR’s Yanzhong Huang discusses how tackling the coronavirus pandemic could be an opportunity for U.S.-China cooperation.

South and Central Asia
Taliban Releases Government Prisoners
The Taliban released twenty prisoners (TOLO) as part of a swap with the Afghan government, said the militant group and the International Committee of the Red Cross. The government said it has released 361 Taliban prisoners so far.

Middle East and North Africa
Israel’s Gantz Denied Extension on Government Formation
Israel’s president denied (Haaretz) Blue and White party leader Benny Gantz’s request for a two-week extension on a deadline to form a government. If a coalition deal is not set by midnight tonight, Israelis could return to the polls (Politico) for the fourth time in just over a year.
 
Saudi Arabia: The country has deported (FT) some three thousand Ethiopian migrants this month, some of whom have tested positive for the coronavirus and others who have shown symptoms. Ethiopia and the United Nations called for a temporary halt to deportations.

Sub-Saharan Africa
New Ebola Cases Dash Hopes of End to DRC Outbreak
The Democratic Republic of Congo recorded a new death (Reuters) from the Ebola virus on Friday, two days before the country was due to declare an official end to its outbreak. Another death from the virus was recorded yesterday.
 
This CFR Backgrounder looks at the Ebola virus.
 
Africa: African ambassadors filed a joint complaint (Reuters) to China’s foreign ministry saying that Africans in the Chinese city of Guangzhou have faced discrimination and harassment. The foreign ministry denied the claims, which said Africans faced threats of visa revocation, arrest, and deportation, and that they were being ejected from hotels in the middle of the night.

Europe
Turkey Rejects Interior Minister’s Resignation
Turkey’s interior minister attempted to resign (Anadolu) over the chaotic implementation of a coronavirus-related curfew, but President Recep Tayyip Erdogan rejected the resignation.
 
Brussels: The European Union’s competition chief, Margrethe Vestager, endorsed member countries’ purchases of stakes in companies (FT) to counter the threat of Chinese takeovers.

Americas
Mexican Governors Demand Tax Reform in Rebuke of President
The governors of four wealthy Mexican states called to reform (FT) the nation’s fiscal code—in which taxing and spending are mostly directed by the federal government—amid criticism of President Andres Manuel Lopez Obrador’s response to the coronavirus.
 
Brazil: Hundreds of people in Sao Paulo demonstrated against social distancing (Guardian), echoing President Jair Bolsonaro’s continued condemnation of such measures.
 
This CFR In Brief looks at Bolsonaro’s response to the coronavirus.

United States
Coronavirus Deaths Surge in Nursing Homes
More than 3,300 people have died due to the coronavirus in U.S. nursing homes, up from around 450 people ten days ago, according to data from the Associated Press.
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