OPEC production expected to decline in 2020 due to the spread of Corona virus in China
The US Bloomberg agency said in its report published on Sunday, 2nd February 2020 that the Organization of Petroleum Exporting Countries “OPEC” has to reduce its production to overcome the weak global demand for oil after the outbreak of the Corona virus in China, which is the largest importer of oil in the world, and added that a quarter of oil exports From OPEC last year 2019 was destined for China.
“S&P Global Platt’s” expects global demand to decline during February 2020 at a rate of 2.6 million barrels per day, while “Goldman Sachs” expects demand in 2020 as a whole to decrease by 260,000 barrels per day, which will lead to a price drop of about $ 3 a barrel, thereby the impact of the Corona virus on oil is similar to the impact of the SARS epidemic in China in 2002.
For refined oil products, the effect of the virus on products is expected to vary, with fuel products used for transportation and travel more affected by the travel ban to China.
According to the announcement by the National Health Commission of China on Monday morning, February 3, 2020, the death toll from the virus has risen to 304 and the number of infected people to 14,411. The World Health Organization declared a state of emergency on Thursday 30 January 2020.
