Firm on Increasing Optimism Over OPEC+ Production Cuts

The Covid-19 outbreak will slow the growth in oil demand this year Opec says

The steady pricing comes on the heels of the Organization of the Petroleum Exporting Countries (OPEC) lowering its 2020 demand forecast for its crude by 200,000 barrels per day (bpd) on Wednesday. "... The consequences of COVID-19 for global oil demand will be significant".

While the brief SARS epidemic of 2003 has at times been used as a reassuring point of comparison, China's economy has changed enormously since then.

"There is already a major slowdown in oil consumption and the wider economy in China", the IEA said.

Oil demand in China, the world's second-largest crude consumer, has plunged because of travel restrictions to and from the country and quarantines within it. Hubei Province, the epicentre of the outbreak, said on Thursday that the number of new confirmed cases there jumped by 14,840 to 48,206 on February 12 and deaths climbed by a daily record of 242 to 1,310.

Oil refiner China National Chemical Corp said on Thursday that it would close a 100,000 bpd plant and cut processing at two others amid falling fuel demands.

OPEC, at its December meeting, agreed to reduce output by an additional 500,000 barrels per day through the first quarter.

China's coronavirus death toll surpasses 1400, but fewer new cases
Some 80,000 medical workers were involved in combating the epidemic in Wuhan , the city government said earlier this month. Japan confirmed its first coronavirus death on Thursday - a woman in her 80s living in Kanagawa prefecture near Tokyo.

"The effect of the Covid-19 crisis on the wider economy means that it will be hard for consumers to feel the benefit of lower oil prices", the report concludes. Its oil demand has nearly doubled since 2003 and represented more than three-quarters of global oil demand growth previous year.

"The main reason behind the oil demand growth revision and hence the demand for OPEC crude, is the outbreak of the Coronavirus and its expected impact on China's oil demand and, by extension, global oil demand", OPEC's Monthly Oil Market Report said.

The IEA estimates that the demand for OPEC crude has dropped from 29.4 million barrels per day (mbd) in the final quarter of 2019 to 27.2 mbd in the first three months of this year.

At the end of a year ago, OPEC and its allies including Russian Federation, called OPEC+, agreed to further cuts in oil production in order to compensate for rising production in the United States and avoid excess supplies that would depress prices.

It noted that this is 1.7 mbd below what what OPEC produced in January when the new production cuts came into force.

Related News:

  • EFF disrupts SONA over De Klerk, Gordhan

    EFF disrupts SONA over De Klerk, Gordhan

    It was clear that Thandi Modise wanted to avoid violence, hence she suspended the proceedings, he explains. On leaving the house, the members shouted, "We're leaving you with your De Klerk and Pravin".
    Jennifer Aniston turns 51, Friends actor receives warm wishes

    Jennifer Aniston turns 51, Friends actor receives warm wishes

    The " Friends " star, who turned 51 yesterday, shared the "birthday surprise" with her 27.7 million followers on Instagram . Jennifer has been happily single ever since she split from second husband Justin Theroux , 48, in February 2018.
    Watch Astronaut Christina Koch Reunite With Her Dog After a Year Apart

    Watch Astronaut Christina Koch Reunite With Her Dog After a Year Apart

    Christina Koch obtained a spacewalk selfie in January 2020. "I feel great", Koch said about six days after her return to Earth. The astronaut posted a sweet video on her Twitter when she was received by her dog after returning home.
  • USA  says it's ready to help North Korea combat virus

    USA says it's ready to help North Korea combat virus

    Yesterday it was reported that a North Korean official was executed for breaching quarantine procedures. North Korea closed its borders last month to tourists after the outbreak.
    Bill Belichick yet to reach out to Tom Brady

    Bill Belichick yet to reach out to Tom Brady

    And before everyone in New England freaks out that he is going to leave, he will give them the last shot to make things right. One team is already waiting in line to offer Brady a boatload of money.
    Wholesale price inflation seen at 3.1% in January

    Wholesale price inflation seen at 3.1% in January

    The Reserve Bank of India had kept the key policy rate unchanged earlier this month mainly due to high inflation. This is the highest inflation rate since the NDA government came to power at the Centre in May 2014.
  • PlayStation 5 Manufacturing Costs Reportedly at 'Around $450 Per Unit'

    PlayStation 5 Manufacturing Costs Reportedly at 'Around $450 Per Unit'

    However, it appears that the Sony executives would prefer to sell for a profit, much as they did with the PlayStation 4. The report states that manufacturing costs are expected to hit $450 per console unit - around £350 / AU$670.
    London subway could be breeding ground for coronavirus - United Kingdom  doctors

    London subway could be breeding ground for coronavirus - United Kingdom doctors

    Patients with suspected coronavirus have swabs taken of their nose and throat which are sent to one of 12 labs across the UK. Video footage shows a man in a black hoodie walking into an ambulance at 9.45am with two staff members in full body gowns.
    WHO Gives New Name To Coronavirus Disease

    WHO Gives New Name To Coronavirus Disease

    However, the number of new infections nationally was down by almost 20% from the day before-coming down from 3,062 to 2,478. COVID-19 is a new virus that causes respiratory illness in people and can spread from person to person.
  • John Kelly unloads on President Trump

    John Kelly unloads on President Trump

    But supporters of the resolution were unable to muster a two-thirds vote that would override an expected presidential veto. Collins, said Congress can't be sidelined in these "important decisions". "It is long overdue", the Maine Republican said.
    Tiger Roll only '50-50' to go for third straight National win

    Tiger Roll only '50-50' to go for third straight National win

    Other horses towards the top include Bristol de Mai and Native River. His score of 148 is similar as he carried in 2017.
    Colorado’s Mel Tucker headed to Michigan State, reports say

    Colorado’s Mel Tucker headed to Michigan State, reports say

    He also was the interim head coach for Jacksonville over the final five games in 2011 after Jack Del Rio was sacked . He spent three years as the Dawgs defensive coordinator, helping win a Rose Bowl and almost a National Championship.


Most liked

Trump to transfer $3.8B from military to fund his wall
In response to the news, several congressional members on Capitol Hill are decrying the move as unconstitutional and risky . Patrick Leahy, the top Democrat on the Senate Appropriations Committee called the wall a "vanity" project.

Light snow will linger Thursday before subzero temperatures arrive during evening hours
Rapidly falling temperatures Wednesday afternoon could lead to a flash freeze if local roads are in a wet or slushy condition. The Star produced this weather update in partnership with the local FOX4 television station.

Bong Joon-ho's Parasite, Memories of Murder Getting Criterion Releases!
It turns out, however, the trophy for Best International Feature Film does not actually go to the film's director. The Kims provide "indispensable" luxury services while the Parks obliviously bankroll their entire household.

IBM Places Faith In ‘Slack’ For Office Communication
IBM has been Slack's largest customer for several years and has expanded its usage of Slack over that time. It is now an important development by Slack to include IBM in the customer list with such a large number.

British Minister Disagrees With PM Johnson, Resigns
Oliver Dowden has become a full cabinet member as culture secretary having previously attended the meetings as paymaster general. The Prime Minister, Boris Johnson, has promoted him from Chief Secretary to the Treasury, a role he was given in July 2019.

Jennifer Hudson to perform Kobe Bryant tribute at NBA All-Star Game
Saturday will feature Queen Latifah performing Stevie Wonder's "Love's in Need of Love Today." with youth from Chicago. The All-Star Game will begin at 8 PM EST (five o'clock in the west) on Sunday, February 16th. .

Cruise operator Carnival sees hit to 2020 earnings from coronavirus outbreak
The epidemic originated in mainland China , where more than 1100 people have now died from the virus. People who test positive for the virus are taken off the ship to a hospital.

Four Men Arrested in Murder of Gay Journalist in Northern Ireland
Lyra McKee was standing near a police vehicle when she was hit by a bullet fired by a masked gunman towards officers. An application for bail was adjourned, and McIntyre will be remanded in custody until February 27.

Latest on coronavirus spreading in China and beyond
Outside of Hubei , there were 12 more deaths, but the number of new cases fell for a ninth day in a row, with 312 extra patients. The online newspaper VN Express cited a senior official of Vinh Phuc province as reporting an increase in cases in Son Loi.

Trump Demands NY Drop Its 'Unnecessary Lawsuits' As He Freezes Travel Program
Acting Homeland Security Secretary Chad Wolf said the leaders held a "productive meeting". Trump says NY is missing out on a "goldmine" of energy revenue.

Judge halts Microsoft work on Pentagon cloud contract after Amazon suit
The contract is meant to give the military better access to data and technology from remote locations. Bezos, Amazon, and the Washington Post ", according to a court filing .

Italy's Senate votes for right-wing leader to face trial
Salvini, whose party recently lost a key regional election in Emilia Romagna, faces yet another hurdle on February 27. He was interior minister at the time, and had ordered the closure of all Italian ports to migrant rescue ships.

Pep Guardiola says Manchester City could sack him for Champions League failure
New players, investment, more and more, and after they got them they are the best team in the world right now. Guardiola has not won the competition since 2011, when he lifted the trophy for a second time with Barcelona.

Coronavirus death toll jumps by record 242 in just one day
The Westerdam cruise ship anchored Thursday off Cambodia for health checks on its 2,200 passengers and crew. The new numbers in Hubei appear to burst that bubble, bringing official statistics closer to reality.

Miley Cyrus Made Fun of Her NYFW Wardrobe Malfunction
However, instead of fretting over the incident, Cyrus embraced the mishap, by sharing the moment with her social media followers. Miley had just strutted her stuff on the runway for Marc Jacobs alongside Gigi and Bella Hadid , Liya Kebede and Kaia Gerber .