Crude oil prices sluggish due to spread of infections
Crude oil prices remain sluggish as the spread of the new coronavirus has a serious impact on the global economy. Saudi Arabia's energy minister, the largest oil-producing country in the Middle East, has told NHK and other sources that it plans to make further adjustments to reduce production before the meeting of oil-producing countries next week.
Given that the spread of the new coronavirus will have a serious impact on the global economy and reduce demand for crude oil, international crude oil futures prices in the London market have been sluggish, dropping by nearly 4% on the 24th. Is.
Saudi Arabia's Minister of Energy Abdul Aziz told interviews with NHK on Tuesday that oil-producing countries should not be on the lookout for sluggish demand and prices.
He added, "I am confident that we will continue to work together among oil-producing countries," and said before the meeting of oil-producing countries next week that he would make adjustments to reduce production further in earnest.
Russia is still cautious, however, and some are skeptical that oil-producing countries will be able to come up with a consistent response.
In Saudi Arabia, 70% of the exports of crude oil and petrochemical products are to Asia such as China and Japan, and there is growing concern that prolonged declines in crude oil prices will have an impact on their economies.