OPEC May Take Additional Production Cuts

OPEC May Take Additional Production Cuts

It is estimated that the Organization of the Petroleum Exporting Countries (OPEC) will make an additional 1 million barrels a day to offset the falling global demand for oil due to the coronavirus (Covid-19) outbreak. Commodity Economist Samuel Burman, an independent research institution in London, Capital Economics, made evaluations to the AA correspondent for the meetings of the association of OPEC and some non-OPEC oil companies in Vienna, Austria today and tomorrow. Burman said that the union called "OPEC-Plus" (OPEC) is estimated to reduce crude oil production by 1 million barrels a day in addition to the total 1.7 million barrel cuts it is currently implementing. Pointing out that Saudi Arabia voluntarily applied 400,000 barrels a day after the OPEC meeting held in December 2019, Burman stated that this week's meeting will be formalized and 600,000 barrels a day decision is expected from other OPEC-Plus countries. SURPLUS SUPPLY EXPECTATION FOR FIRST QUARTER OF YEAR In a report published by Capital Economics, it was stated that the expectations of global economic growth were lowered in the first two quarters of this year due to the Covid-19 outbreak, and weak economic expectation predicted downward pressure on global oil demand and prices.