OPEC drastically lowered its forecast for oil demand growth this year, citing the outbreak of coronavirus in China as the “major factor” behind its decision.
Cartel revised its growth prospects for global oil demand to 0.99bpd. in 2020. This is a decrease of 0.23bpd. from the forecast for the previous month.
At the moment, the response to WTI is extremely weak, with the raw material remaining at 1.34% growth for the day. This suggests that investors have already accumulated the effects of the Crown virus and are turning their attention to OPEC and Russia, expecting further cuts in production an hour soon.
In this regard, led by Saudi Arabia, OPEC has called for an extraordinary meeting with partners outside the cartel to offset the effects of the coronavirus. The recommendation that OPEC has currently put on the agenda is a reduction in yield of 600K barrels per day, but without which it will be impossible to consider whether to agree to the recommendation so presented.