• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 7 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 1 hour "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 8 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours An Indian Opinion on What is Going on in China
  • 1 day Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 13 hours Can Technology Keep Coal Plants Alive and Well?
  • 2 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 3 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 6 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 11 hours Storage of gas cylinders
  • 4 days Nord Stream - US/German consultations
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudis Seek Deeper Output Cuts To Contain Virus Impact On Oil Demand

Saudi Arabia is pushing for deeper emergency production cuts of up to 1 million barrels per day (bpd) as a technical panel of the OPEC+ coalition is meeting in Vienna on Wednesday for a second day of discussions on how to react to the oil price slide and the coronavirus impact on oil demand.

The technical panel meeting this week can only make recommendations to the full ministerial meeting, but if the Joint Technical Committee of the OPEC+ group of producers finds that an emergency ministerial meeting is needed, OPEC and its Russia-led allies could end up holding a meeting earlier than March 5-6, as currently planned.  

Saudi Arabia is signaling that it would be looking for additional cuts of at least 500,000 bpd and up to 1 million bpd to address the slumping oil demand in China, the world’s top oil importer and biggest oil demand growth driver, OPEC+ delegates told Bloomberg.

Russia, for its part, continues to play it cool and insists in public statements that it is ready to move up the meeting, but that thorough analysis of the market would be necessary to see if there is need of further cuts.

Analysts scramble to quantify the demand loss from the virus outbreak, but all, including OPEC, agree that oil demand is currently waning.

The economic slowdown due to the outbreak could cut global consumption by 300,000 bpd to 500,000 bpd for full 2020, which would be around 0.5 percent of global demand, BP’s chief financial officer Brian Gilvary told Reuters on Tuesday. Related: Traders Scramble To Find Oil Buyers Amid Falling Chinese Demand

Wood Mackenzie revised down its annual oil demand growth forecast for China for 2020 by over 200,000 bpd from the previous outlook in early January.

“The Q1 2020 fall in Chinese demand – a 200,000 b/d drop to 13 million b/d - is the first year-on-year decline in the country’s demand since 2009, Ann-Louise Hittle, Vice President, Macro Oils, at Wood Mackenzie, said on Tuesday.

Commenting on OPEC+ emergency discussions, Hittle noted:

“It’s a dilemma for the group because the duration of the hit to oil demand – particularly from China, the world’s largest oil importer - is not clear.”

“Yet, without a further production cut, crude oil prices will remain under pressure and struggle to hold the mid-$50 per barrel price for Brent, let alone recover to above $60 per barrel before Q2 2020,” WoodMac’s Hittle said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • John Di Laccii on February 06 2020 said:
    Saudis should stop producing the oil until prices come up to 299 USD per barrel at east. I the meatime should start exporting thei famous sheeps and sand.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News