Daily Management Review

OPEC+ cancels unscheduled summit due to coronavirus


OPEC has sent invitations to cartel members and their allies on the OPEC + deal for a meeting scheduled for early March in December, Bloomberg reports citing sources.

The agency concludes that the cartel rejected Riyadh’s idea to hold an emergency summit in February due to the situation with coronavirus and the impact of the new epidemic on the oil market. The initiative previously met resistance from Russia. It was assumed that participants in the emergency summit could agree on an additional reduction in production due to falling prices against the background of the epidemic.

In early February, the OPEC + technical committee recommended extending the current deal to reduce oil production by 1.7 million bpd compared to October 2018. While its validity expires in March, the technical committee proposed to extend it until the end of the year and deepen these reductions by 600,000 bps for the second quarter of this year. This is just a recommendation that the OPEC + Ministerial Committee (JMMC) can consider and recommend to all ministers for a final decision.

source: bloomberg.com