How coronavirus will impact oil markets

  


The terrible human toll continues to increase. 

Taking a look at oil though, this via Platts (S&P Global Platts is an energy and commodities information house).

Latest (in brief):

  • forecasting a drop of 200,000 b/d in oil demand for the next two to three months, reflecting roughly 15% of the expected oil demand growth in 2020
  • If the coronavirus is as bad as the Sudden Acute Respiratory Syndrome (SARS) outbreak in 2003, oil demand could fall by 700,000-800,000 b/d, reflecting more than half of the expected demand growth for 2020
  • OPEC members are considering deeper production cuts, or extending their existing deal, in response to a slump in oil prices, according to a source in the group.”The next two weeks are very critical for not only the oil market but the global economy,” the OPEC source said Monday, speaking on condition of anonymity.

Bolding above is mine. 

oil markets - OPEC said to be considering production cuts

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