OPEC+ Technical Committee Discusses Various Options for Responding to Situation on Oil Market
“JTC is continuing to work in Vienna. Our specialists are there, they are watching the situation, discussing various options. I’m not even ready to tell you what we are ready or not ready, not fully understanding the situation and clear forecasts for the development of events in connection with with coronavirus. To do this, you need some more time to see how the situation will develop, what impact will be on world markets for oil", he said.
Earlier, Moody`s published a report from which it followed that the demand for oil in China, the largest consumer of this resource, could be reduced by 10% or 1.4 million barrels per day due to the effects of the outbreak of pneumonia in the country caused by the new coronavirus . If the epidemic lasts for six months, then the increase in oil inventories will put pressure on oil quotes for another year.
If the OPEC+ countries continue to reduce production further, this will keep the price within $ 50 per barrel, according to Moody`s. Further price reductions could also lead to a drop in shale oil production in the United States, agency experts admitted.