RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2020-02-05 11:25:00

OIL MARKET: WITHOUT A PANIC

OIL MARKET: WITHOUT A PANIC

PLATTS - 04 Feb 2020 - Travel bans, closed borders and trade restrictions imposed in the wake of the coronavirus outbreak are politically motivated and are contributing to the destabilization of the global economy, a Chinese official said Tuesday, after briefing representatives from OPEC and other key oil producers.

While the Chinese economy will be affected in the short term by the spread of the virus, it will rebound quickly, China's ambassador to international organizations in Vienna, Wang Qun told reporters outside the OPEC secretariat.

"We do not want to see certain overreactions based on political considerations," Wang said. "All these overreactions will lead to unnecessary disturbances on the market, on the oil market, on the economic market."

Crude oil prices have plunged 20% over the past two weeks, with ICE Brent futures dropping to a one-year low of $53.95/b on Tuesday. The benchmark was trading higher at around $54.81/b at 1537 GMT.

The ambassador had been invited by OPEC and its partners in a production cut accord, including Russia, to update delegates on a technical committee, who are trying to assess the economic impact of the coronavirus outbreak and determine whether immediate output cuts are recommended.

Crude produced by the OPEC+ coalition -- which includes OPEC, Russia and nine other allies -- is very exposed to the outbreak, with China buying more than 70% of its supplies from the group.

Panic stations

The virus has also hit global jet fuel demand, with several airlines and countries – among them many OPEC+ members – suspending flights to and from China. Russia has also closed its border with China.

Wang said that these actions were not specifically discussed in the meeting, but he said he outlined how China was working to contain the spread of the virus and said its severity had been overblown.

"There is no need for panic," Wang said. "Any overreaction...is not in the interest of the general public, let alone the oil market. We have the consensus that we would not like to see this."

He outlined China's experience in fighting SARS in 2003, as well as other epidemics, including swine flu, bird flu and Ebola.

"Over the past four decades, we have built up a very solid scientific and economic foundation, material foundation, which will greatly empower us in our fight against this epidemic," Wang said.

The technical committee, co-chaired by delegates from Saudi Arabia and Russia, is meeting in Vienna today and Wednesday.

Some OPEC members are pushing for additional production cuts to stem the slide in oil prices, but other countries are not fully convinced, sources said.

The entire coalition is scheduled to meet March 5-6 in Vienna, but the meeting could be moved forward if the committee reaches a consensus on production policy.

----- 


Earlier:

OIL MARKET: WITHOUT A PANIC
2020, February, 3, 12:25:00
OIL PRICE: ABOVE $56
Brent crude was at $56.44 a barrel, down 18 cents, or 0.3%, WTI crude rose 10 cents to $51.66 a barrel,
OIL MARKET: WITHOUT A PANIC
2020, January, 31, 12:35:00
OIL PRICE: NEAR $59
Brent were 68 cents higher at $58.97 a barrel, WTI were up by 70 cents to $52.84 a barrel
OIL MARKET: WITHOUT A PANIC
2020, January, 29, 13:30:00
OIL PRICE: NEAR $60
Brent rose 66 cents, or 1.1%, to $60.17 a barrel. U.S. WTI was up 62 cents, or 1.2%, at $54.10 a barrel.
OIL MARKET: WITHOUT A PANIC
2020, January, 27, 15:00:00
OIL PRICE:NEAR $59
Brent fell by $1.79 a barrel, or 2.95%, to $58.90, WTI was down by $1.63, or 3%, at $52.55.
OIL MARKET: WITHOUT A PANIC
2020, January, 15, 12:50:00
OIL PRICES 2020-21: $65-$68
Brent crude oil spot prices will average $65 per barrel (b) in 2020 and $68/b in 2021, compared with an average of $64/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $5.50/b lower than Brent prices through 2020 and 2021, compared with an average WTI discount of about $7.35/b in 2019.
OIL MARKET: WITHOUT A PANIC
2020, January, 13, 15:50:00
OIL MARKET WILL STABLE
Saudi Arabia, the world's biggest oil exporter, is in the midst of an OPEC+ agreement to cut 1.7 million b/d of crude from the market in Jan through to March.
All Publications »
Tags: OIL, PRICE, BRENT, WTI
Chronicle:
OIL MARKET: WITHOUT A PANIC
2021, June, 25, 12:24:00
HYDROGEN RUSSIA AND CIS, Moscow, 20-21 October 2021
International Conference and Exhibition ‘Hydrogen Russia and CIS’ brings together more than 200 senior executives of hydrogen production plants from Russia and the CIS
OIL MARKET: WITHOUT A PANIC
2021, June, 25, 12:23:00
ПЕРСПЕКТИВЫ РАЗВИТИЯ И МОДЕРНИЗАЦИЯ УГОЛЬНЫХ ПРЕДПРИЯТИЙ РОССИИ
Восток Капитал приглашает Вас принять участие в бесплатном вебинаре в рамках подготовки к международной конференции и выставке «Уголь Россия и СНГ» на тему: «Перспективы развития и модернизация угольных предприятий России», который состоится 16 июля, 13:00 (МСК).
OIL MARKET: WITHOUT A PANIC
2021, June, 25, 12:20:00
U.S. COAL PRODUCTION UPDOWN
Through 24 weeks, US output was approximately 279 million st, up 8.9% compared with the year-ago period. It is annualized to be 581 million st for the year, up 8.7% from the previous year.
OIL MARKET: WITHOUT A PANIC
2021, June, 24, 12:20:00
OIL PRICE: NOT ABOVE $76 ANEW
Brent rose 30 cents, or 0.4%, to $75.49 a barrel, WTI climbed 31 cents, or 0.4%, to $73.39 a barrel.
OIL MARKET: WITHOUT A PANIC
2021, June, 24, 12:15:00
U.S. LNG DEMAND UP
Wide spreads between the price of LNG in end-user markets in Asia and Europe and feedgas prices based on the US Henry Hub have been incentivizing robust export activity from the US Gulf and Atlantic coasts.
OIL MARKET: WITHOUT A PANIC
2021, June, 24, 12:10:00
CHINA NEED COAL
A conservative estimate would be for coal consumption of around one billion metric tonnes in 2050, still contributing 10%-15% of China's total energy consumption
OIL MARKET: WITHOUT A PANIC
2021, June, 24, 12:05:00
CHINA COAL PRICES UP
The most-traded coking coal futures contract on the Dalian Commodity Exchange , for September delivery, ended at 2,037 yuan ($314.24) per tonne.
All Publications »