Wednesday 5 February 2020

OPEC+ Talks Focus on Coronavirus as Saudis Push for Emergency Cut - Bloomberg

OPEC+ Talks Focus on Coronavirus as Saudis Push for Emergency Cut - Bloomberg:

OPEC+ officials gathered in Vienna for a second day of debate on the impact of the coronavirus, a process that could result in an emergency ministerial meeting where Saudi Arabia would push for an oil-production cut.

The price of crude has plunged on expectations that the epidemic will squeeze China’s economy and curtail consumption of oil in the world’s biggest importer. That’s prompted Saudi Arabia to advocate for urgent action from Organization of Petroleum Exporting Countries and it allies, but its efforts have repeatedly run up against Russia‘s reluctance to cut deeper.

The true impact of the virus also remains highly uncertain, clouding the cartel’s decision making. Estimates of how much demand will be wiped out in the coming months vary widely, with OPEC’s internal analysis predicting a modest impact but outside estimates showing the biggest hit to consumption since the 2008 to 2009 financial crisis.


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