OREANDA-NEWSGas prices in Europe in 2020 will be reduced due to an increase in LNG supplies amid weak demand in China due to the coronavirus. This was during a conference call said the head of the Austrian company OMV Rainer Seele.

"The reasons for this drop in gas prices are that the European market needs to adapt to an increase in LNG supplies. And the reason for this increase in LNG supplies is due to lower demand in China due to the spread of coronavirus", Zele said.

The OMV report for 2019 says that in 2020 the company expects a decrease in the average price of gas sold compared to the previous year. At the same time, the price of Brent crude this year, according to company forecasts, will average $ 60 per barrel compared to $ 64 per barrel last year.

According to the head of OMV, a decrease in demand in China due to coronavirus will affect oil prices. “Our forecast for the price of oil in 2020 doesn't include the coronavirus factor. But I admit that coronavirus especially in the first quarter of 2020 will lead to a decrease in the economic growth of China and Asia. But we need to look at the supply factor", Zele added.