The new coronavirus puts a brake on the growth of global oil demand. OPEC oil cartel notices this. In recent times, oil prices have been under pressure due to waning demand for the raw material due to concerns about the virus outbreak.
The problem is that a large part of the economy in China is down. As a result, fuel consumption in the country fell sharply.
In a new estimate of the organisation of oil-exporting countries, the forecast for the global demand for oil in 2020 has been adjusted downwards by 230,000 barrels to a growth of 990,000 barrels per day.
Especially for the first quarter, the forecast has been considerably lowered, namely by 440,000 barrels per day.
The oil-producing countries of OPEC, and in particular Saudi Arabia, want to agree with additional production reductions with their allies to support prices. But it is said that Russia, the most important ally, is not yet convinced.
The lower performance of industries in different European countries also did not benefit the prospect of oil prices recently. Oil traders also keep an eye on the situation in Libya where warring parties are currently blocking oil exports.