OPEC+ Countries Conduct Negotiations One Month Early Due To Coronavirus
The countries of the OPEC+ agreement can conduct negotiations on oil production one month early in connection with the outbreak of pneumonia caused by the new coronavirus in China.
The OPEC+ meeting on the extension of the agreement on reducing oil production and determining the volume of reduction was planned to be held in March 2020. However, negotiations may take place in February 2020 due to the threat of the spread of coronavirus from China and a sharp decline in oil prices in recent weeks.
Since the beginning of January 2020, Brent crude fell by 12.91%, and WTI by 14.49%. With this regard, OPEC+ ministers may need to discuss the measures necessary to ensure a balance in the oil market as soon as possible. The OPEC + agreement is valid until the end of the 1st quarter of 2020, its extension was planned to be discussed at the OPEC + meeting on March 6, 2020.
The volume of production decline was agreed at the end of 2019, when a decision was made in connection with a seasonal decrease in demand to further reduce production by 500 thousand barrels per day to 1.7 million barrels per day compared to October 2018. However, the concerns about a slowdown in business activity and a decline in oil demand due to the outbreak of pneumonia greatly affect oil prices.