Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » OPEC aims to extend oil output cuts through June, alarmed by China virus

    OPEC aims to extend oil output cuts through June, alarmed by China virus

    January 28, 2020
    Share
    Facebook Twitter LinkedIn WhatsApp

    London/Dubai — OPEC wants to extend current oil output cuts until at least June from March, with the possibility of deeper reductions on the table if oil demand in China is significantly impacted by the spread of a new coronavirus, OPEC sources said.

    The quick slide in oil prices over the past few days has alarmed OPEC officials, the sources say, as the new virus found in China and several other countries raised concerns about a hit to economic growth and oil demand.

    Oil futures on Tuesday broke a five-day losing streak but Brent crude stayed below $60 per barrel. On Monday it hit a three-month low of $58.50, as the virus outbreak triggered a global selloff of riskier assets.

    Saudi Arabia, OPEC’s de-facto leader, joined by key oil producers such as the United Arab Emirates, Algeria and Oman, sought to calm market jitters on Monday – urging caution against gloomy expectations on the impact of the virus on the global economy and oil demand.

    But OPEC officials have also started weighing their options and intensified internal discussion on how best to respond to the price slump, the sources said.

    Also Read: Soaring demand seen driving French ethanol sales to new record this year

    “A further extension is a strong possibility and a deeper cut is a possibility,” said one OPEC source, adding that the impact of the China virus on oil demand would be clearer over the coming week.

    “Extension is highly possible … until June,” another source said, adding that an additional preferable option is to extend the pact until end of 2020 and that a deeper cut was “possible” if there was a need for it.

    A source familiar with Russian thinking, said that although Moscow had been keen earlier to exit from cuts, it would stay on board if oil prices continued to trade below $60 a barrel

    OPEC+, which includes Russia, has been reducing oil supply to support prices, agreeing in December to hold back 1.7 million barrels per day (bpd) of output until the end of March.

    Russia had insisted it wanted the current deal to last only until March, while Saudi Arabia has been keener for the deal to last longer, according to OPEC+ sources.

    This year, OPEC expects its world market share to fall further as output booms in non-OPEC rivals including the United States, Brazil, Canada, Australia, Norway and Guyana while global demand is rising.

    Saudi Arabia’s economy, the largest in the Arab world, remains dominated by hydrocarbon revenues despite plans to diversify. It has suffered in recent years because of low oil prices and austerity measures aimed at reducing a huge budget deficit. The kingdom wants high oil prices to balance its state budget.

    Saudi Energy Minister Prince Abdulaziz bin Salman said on Friday all options were open when OPEC+ meets next in Vienna in early March, when asked about the possibility of a further output reduction.

    Follow us on twitter

    – Reuters

    Related News

    Amakpe Refinery Chairman sues financial firm, denies $1.46m debt claim

    Nigeria commits $50m to Wholesale Impact Investment Fund

    OPEC head says oil demand will keep growing

    E-book
    Resilience Exhibition

    Latest News

    Amakpe Refinery Chairman sues financial firm, denies $1.46m debt claim

    June 10, 2025

    Recovered funds boost student loans, credit access for civil servants – EFCC

    June 10, 2025

    Nigeria commits $50m to Wholesale Impact Investment Fund

    June 10, 2025

    OPEC head says oil demand will keep growing

    June 10, 2025

    ‘Shell’s decision on Phase 2 of LNG Canada will depend on other opportunities’

    June 10, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.