- Nineteen prisoners use cutlery to break out of cells at Winchester prison
- France wants progress in Ukraine before Russia returns to G7
- Italy president begins talks to seek way out of government crisis
- Italian PM expected to resign as political chaos deepens
- Russia says US cruise missile test ‘regrettable’
- Kremlin - No date set for Normandy talks on Ukraine despite Macron meeting
- Egypt court hands out 6 death sentences on terror charges
- Putin says Russian nuclear explosion poses no threat
- Russian panel eyes alleged foreign interference in protests
- Gran Canaria wildfire triggers evacuation of thousands of people
- PM Johnson calls on Germany and France to compromise on Brexit
- Sudan's ex-president Bashir arrives at corruption trial
Tehran 4 February _OPEC and non-OPEC producers may shave another 500,000 barrels per day off their oil output as the impact from a coronavirus epidemic is weighing on the market.
TEHRAN, Young Journalists Club(YJC)_Their energy ministers are about to meet on Feb. 14-15 to put a floor on oil prices which have taken a hit from a prolonged trade war between the United States and China and a glut of shale supply in North America.
Iran’s Minister of Petroleum Bijan Zangeneh said on Monday the spread of the cornovirus has further hit oil demand as he called for efforts by OPEC members and their allies such as Russia to balance the prices.
“The oil market is under pressure and prices have dropped to under $60 a barrel and efforts must be made to balance it,” he said in Tehran.
Oil has fallen $10 a barrel this year to $56. On Tuesday, prices rose 1% on expectations that main producers would move to curb production.
International benchmark Brent crude traded at $54.94 a barrel, up 49 cents, while US West Texas Intermediate (WTI) crude was up 68 cents at $50.79, Reuters reported.
Russia, a major producer outside OPEC, has indicated that it is on board to support output curbs. “Russia is ready to cooperate in this format,” Kremlin spokesman Dmitry Peskov said on Monday.
Analysts say the spread of the coronavirus in China threatens to cut oil demand by 250,000 barrels per day.
Ratings agency Fitch said oil producers may need to cut production further if the coronavirus outbreak lasts for several months.
Several reports said Saudi Arabia was the most anxious and sought to make sure the oil producing alliance delivers deeper cuts.
The Wall Street Journal said the kingdom was likely to undertake a temporary cut of 1 million barrels per day to jolt oil markets, indicating the country’s desperate attempts to balance its budget.
“The market needs assurances that the supply/demand equation remains in balance for prices to hit a floor. This suggests a commitment from OPEC not just to extend oil supply cuts, but even implement deeper ones beyond March,” FXTM analyst Hussein Sayed told Reuters.
Your Comment