Oil market faces surplus and needs balancing: Iran oil minister
Iran’s Oil Minister Bijan Zanganeh said on Wednesday that the oil market is facing a surplus and needs be balanced, according to SHANA, the news site of the Iranian oil ministry. “There is no doubt that there is an imbalance in the supply and demand of oil. Right now, the supply in the market is greater than demand,” Zanganeh said. “It’s necessary for OPEC and non-OPEC to make all their efforts to balance the market.” Click here to read more from Reuters.
Oil rises as OPEC, allies work on big cut
Brent oil prices rose on Wednesday on expectations that major producers have moved closer to an agreement to enact deeper output cuts aimed at offsetting the slump in demand caused by the coronavirus outbreak. Saudi Arabia and other OPEC members are seeking to persuade Russia on Wednesday to join them in large additional oil output cuts to prop up prices which have tumbled because of the coronavirus outbreak. Click here to read more from CNBC.
Wall Street consensus builds around oil market contraction
Goldman Sachs Group Inc. became the first major Wall Street bank to anticipate that global oil demand will contract in 2020 for only the fourth time in nearly 40 years. The dire forecast came just as influential oil-market consultants, Facts Global Energy and IHS Markit, also published similar warnings, creating an ominous backdrop for the meeting of OPEC and its allies in Vienna this week. Click here to read more from World Oil.
Huge Red Flag For Oil: Global Economic Growth Could Be Cut In Half
A prolonged and wide-ranging coronavirus outbreak could cut global economic growth to just 1.5 percent this year, half the growth rate expected before the outbreak, and send Japan and the euro area into recession, the Organization for Economic Cooperation and Development (OECD) said on Monday. A significant drop in global economic growth is very bad news for oil demand, which has already been depressed by the outbreak. Click here to read more from Oilprice.com.