|
|
|
|
Search: 
Latin American Herald Tribune
Venezuela Overview
Venezuelan Embassies & Consulates Around The World
Sites/Blogs about Venezuela
Venezuelan Newspapers
Facts about Venezuela
Venezuela Tourism
Embassies in Caracas

Colombia Overview
Colombian Embassies & Consulates Around the World
Government Links
Embassies in Bogota
Media
Sites/Blogs about Colombia
Educational Institutions

Stocks

Commodities
Crude Oil
US Gasoline Prices
Natural Gas
Gold
Silver
Copper

Euro
UK Pound
Australia Dollar
Canada Dollar
Brazil Real
Mexico Peso
India Rupee

Antigua & Barbuda
Aruba
Barbados
Cayman Islands
Cuba
Curacao
Dominica

Grenada
Haiti
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines

Belize
Costa Rica
El Salvador
Honduras
Nicaragua
Panama

Bahamas
Bermuda
Mexico

Argentina
Brazil
Chile
Guyana
Paraguay
Peru
Uruguay

What's New at LAHT?
Follow Us On Facebook
Follow Us On Twitter
Most Viewed on the Web
Popular on Twitter
Receive Our Daily Headlines


  HOME | Oil, Mining & Energy (Click here for more)

OPEC+ Falls Short of Agreement on Oil Supply Cuts over Coronavirus Outbreak

VIENNA – An OPEC technical committee and its allies (OPEC+) failed to reach a consensus on the need to cut oil production over the coronavirus outbreak.

The three-day meeting in Vienna, chaired by Saudi Arabia and Russia, ended on Thursday without an agreement between the parties.

Russia rejected a Saudi proposal to recommend a production cut of 600,000 barrels per day in the second quarter, sources close to the negotiation said.

Participants of the meetings said behind closed doors that there was an understanding that production levels will need to be cut, state-run Russian news agency Tass reported.

The Russian government said in Moscow that assessing the impact of the epidemic on the market will take time and authorities in the country had not formulated a position on the possible steps to take.

Energy Minister Alexander Novak told Interfax agency: “I can’t say now what we are or are not willing to do without fully understanding the situation and without clear forecasts about the development of the coronavirus situation.”

“Some time is needed for this in order to see how the situation will develop and what influence it will have on world markets, on oil,” he added when asked if Russia supports a new production cut.

Any measure requires the unanimous approval of the 23 oil ministers of the OPEC+ coalition, made up of the 10 OPEC partners, Russia and nine other allied producers.

Helima Croft, global head of commodity research for RBC Capital Markets, said: “Russia once again seems reluctant to take additional output action, but we believe that Saudi Arabia will ultimately be able to prevail if it remains convinced that deeper cuts are required to stabilize a market roiled by the coronavirus.”

She told EFE at OPEC headquarters that a disagreement would leave some tensions between the parties, since Russia is not part of OPEC and should not be able to veto its decisions.

The next ministerial meeting of the group is scheduled for March 5-6, although there were rumors circulating at OPEC headquarters in Vienna on Thursday about bringing the event forward to next week, Feb. 14-15, although they are unconfirmed.

If the Saudi position is imposed an additional cut of 600,000 barrels would be added to the current reduction of 1.7 million barrels per day (mbd), which was agreed in December.

Markets reacted cautiously to the news from Vienna and Moscow, with Brent Crude, the benchmark for Europe, at $54.95 per barrel at 1325 GMT, 0.6 percent less than at the close of Wednesday.

The expansion of the coronavirus has generated fears of a major economic slowdown in China, where quarantines and travel restrictions have caused a contraction in oil consumption.

With an additional cut producers hope to avoid an excess of supply and a greater fall in prices, which have fallen between 15 and 20 percent in the last weeks.

China, the world’s second largest economy, is the main driver of crude oil demand and OPEC+ is its main market.

The Asian country is the world’s largest importer of crude oil with about 10 mbd, with more than two-thirds of that crude oil coming from OPEC and its allies.

 

Enter your email address to subscribe to free headlines (and great cartoons so every email has a happy ending!) from the Latin American Herald Tribune:

 

Copyright Latin American Herald Tribune - 2005-2020 © All rights reserved