Oil prices drop sharply Oil-producing countries Start discussions on expanding the range of reduced production March 5 20:36
With crude oil prices falling sharply due to the spread of the new coronavirus, major oil-producing countries, such as Saudi Arabia, have begun discussions on expanding the scale of production cuts, aiming to support oil prices.
International oil prices have fallen by more than 20%, with the expectation that the spread of the new coronavirus will stagnate economic activity around the world and reduce demand for oil.
Oil-producing nations that rely on crude oil for their revenues and the country's economy are worried about this situation. OPEC, a member of the Organization for Petroleum Exporting Countries, and other non-members, such as Russia, have been headquartered in OPEC. There has been a response talks in Vienna, Austria.
The general meeting of OPEC member states will begin on the 5th, and Algeria's Minister of Energy Alcab, chaired at the beginning, said, "The spread of the new coronavirus is hitting the global economy and demand for crude oil. It's covered with uncertainty and needs to be addressed. " Russia will join the discussion on the 6th.
These oil-producing countries have been collaborating and reducing production for three years to keep oil prices high. Currently, the company is aiming to cut 1.7 million barrels a day, 1.7% of global demand, but the recent sharp decline has focused on how much the scale of the reduction can be increased.
However, as the outbreak of the new coronavirus spreads to countries other than China, such as Asia and Europe, it is not clear how far the demand for crude oil will decline in the future.
For this reason, it is unclear whether prices will stop falling even if they decide to further reduce production, and oil-producing countries are forced to make difficult decisions.