OPEC will analyze coronavirus effects in the oil market
The organization plans to hold a meeting away from the press on March 5 and 6
The Joint Ministerial Committee for Supervision of the Organization of Petroleum Exporting Countries (OPEC) will hold a meeting away from the press, where they plan to evaluate the effects of the coronavirus on the oil market.
However, the partners of the organization along with its main ally, Russia, have already established a meeting in Vienna this Tuesday and Wednesday, in order to prevent the virus from continuing to wreak havoc on the crude oil market, especially at times when the oil has lost about 15% of its value since the beginning of the year.
The date for the meeting to be held by the Ministerial Committee has already been set for March 5 and 6, but some producers expressed the need to advance this meeting. Its assessment is subject to falling prices, because the effects of the virus have led the Chinese government to implement restrictive measures to prevent the spread of the infection.
The Asian country is the largest oil exporter in the world and a drop in consumption can have a strong impact on market prices.
At the meeting scheduled for March, OPEC could extend the current cuts until June, although if oil industry in China is greatly affected, the organization could consider a deeper cut.
K.Villarroel
Source: bancaynegocios
