The Organization of Petroleum Exporting Countries (OPEC) and its ally Russia are discussing the possibility of reducing oil production during an upcoming meeting in Vienna against the backdrop of the Corona virus that appeared in China, according to the Iraqi Oil Ministry on Tuesday.
Oil prices have been falling dramatically since the beginning of this year, in light of concerns about the Chinese economy due to the Corona virus.
OPEC and Russia are holding a "mixed technical meeting" on Tuesday and Wednesday in Vienna to discuss falling prices.
A spokesman for the Iraqi Oil Ministry, Assem Jihad, told AFP on Tuesday that "according to the market needs and the implications of the Corona virus, will we need an additional reduction? This will be discussed according to the technical reports submitted."
Jihad added that "the technical committee discusses the advice, which they will submit to their ministers. Any reduction will be announced at the meeting at the ministerial level."
The next ministerial meeting of OPEC countries led by Saudi Arabia and its allies outside the organization, led by Russia, is still scheduled for the fifth of March. With concern about the Corona virus, the possibility of rounding the meeting has been circulated in recent days.
The spokesman pointed out that it is possible to submit the date of the expected meeting in March to February, "according to the needs of the market and the emergence of the Corona virus."
"At the present time, the market appears satisfied with China's containment and management of the virus, and the worst will soon end without an accelerated spread outside China, and OPEC will intervene to reduce production and prevent a surplus in stock," said Bernie Childrop, chief commodity analyst at Nordic Bank Sepp.
Saudi Arabia said on Monday that the impact of the emerging Corona virus on oil demand was "very limited".
And at the end of 2016, the 14 OPEC member states, in addition to 10 other oil countries, agreed to limit their production in order to support oil prices in the face of an increasing supply.
Investors fear the repercussions of the emerging Corona virus, which surfaced in December in central China's Wuhan, before spreading to several countries.
Beijing is the world's first oil importer and second consumer. The number of deaths from the emerging coronavirus was 425, surpassing the outcome of the SARS virus (acute respiratory syndrome) that killed 349 victims in 2002-2003.
Oil prices have been falling dramatically since the beginning of this year, in light of concerns about the Chinese economy due to the Corona virus.
OPEC and Russia are holding a "mixed technical meeting" on Tuesday and Wednesday in Vienna to discuss falling prices.
A spokesman for the Iraqi Oil Ministry, Assem Jihad, told AFP on Tuesday that "according to the market needs and the implications of the Corona virus, will we need an additional reduction? This will be discussed according to the technical reports submitted."
Jihad added that "the technical committee discusses the advice, which they will submit to their ministers. Any reduction will be announced at the meeting at the ministerial level."
The next ministerial meeting of OPEC countries led by Saudi Arabia and its allies outside the organization, led by Russia, is still scheduled for the fifth of March. With concern about the Corona virus, the possibility of rounding the meeting has been circulated in recent days.
The spokesman pointed out that it is possible to submit the date of the expected meeting in March to February, "according to the needs of the market and the emergence of the Corona virus."
"At the present time, the market appears satisfied with China's containment and management of the virus, and the worst will soon end without an accelerated spread outside China, and OPEC will intervene to reduce production and prevent a surplus in stock," said Bernie Childrop, chief commodity analyst at Nordic Bank Sepp.
Saudi Arabia said on Monday that the impact of the emerging Corona virus on oil demand was "very limited".
And at the end of 2016, the 14 OPEC member states, in addition to 10 other oil countries, agreed to limit their production in order to support oil prices in the face of an increasing supply.
Investors fear the repercussions of the emerging Corona virus, which surfaced in December in central China's Wuhan, before spreading to several countries.
Beijing is the world's first oil importer and second consumer. The number of deaths from the emerging coronavirus was 425, surpassing the outcome of the SARS virus (acute respiratory syndrome) that killed 349 victims in 2002-2003.
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