• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 6 hours Dr. Fauci is over rated.
  • 1 hour China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 17 hours Dept of Energy ditches plans to buy Crude Oil for SPR
  • 4 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 7 hours Where's the storage?
  • 1 min TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 3 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
  • 56 mins Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 18 hours Wastewater Infrastructure Needs
  • 1 day Analysis into the Iran Outbreak
  • 18 hours >>The falling of the Persian Gulf oil empires is near <<
Alt Text

America’s Shortage Of This Metal Keeps Trump Up At Night

Everything from the 5G revolution…

Alt Text

The Cheapest Way For Trump To Save U.S. Oil

U.S. President Trump is under…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

OPEC+ Struggles With Oil’s Fast And Furious Fall

OPEC+ is meeting urgently to discuss moves in the face of an inexorable slide in oil prices that has brought Brent crude far below $60 a barrel and that saw West Texas Intermediate dip below $50 this week.

“Given oil’s fast and furious fall -- and the havoc that it could wreak on government finances across the producer group -- it looks like they don’t believe they have the luxury of time,” RBC Capital’s Helima Croft said as quoted by Bloomberg.

Bloomberg earlier reported, citing oil industry insiders, that demand in China could slump by as much as 20 percent because of the coronvarius outbreak. Due to the extensive travel restrictions and factory activity stalling, this 20-percent plunge in oil demand would be equal to around 3 million barrels per day (bpd) and this would make it the most sudden shock to global oil demand since 9/11, according to Bloomberg.

The coronavirus has claimed more than 360 lives, which has made it more deadly than the SARS epidemic from 2003. The outbreak is also close to being declared a pandemic, which won’t help oil prices either.

OPEC+ was already struggling with prices before the virus outbreak but now the situation looks a lot gloomier. There is precious little the cartel could do except deepen the oil production cuts further. Yet some would say Saudi Arabia, at least, is already cutting to the bone. Further cuts are bound to affect revenues negatively while they will not necessarily affect prices positively.

In fact, there is a solid chance they won’t affect prices much at all. The Libyan oil terminal blockade should have boosted prices considerably, with the production outage now having taken 1 million bpd off the market. Yet it has not. Neither have the otherwise bullish events that came before the blockade, notably the spike in U.S.-Iran tensions at the start of the year, which pushed prices up only for a short while before they retreated.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News