Oil producer group OPEC on Monday scrapped its planned meeting in April and will decide instead whether to extend output cuts in June, once the market has assessed the impact of U.S. sanctions on Iran and the crisis in Venezuela.
A ministerial panel of OPEC and its allies recommended that they cancel the extraordinary meeting scheduled for April 17-18 and hold the next regular talks on June 25-26.
The energy minister of OPEC’s de facto leader, Saudi Arabia, said the market was looking oversupplied until the end of the year but that April would be too early for any decision on output policy.
“The consensus we heard… is that April will be premature to make any production decision for the second half,” the Saudi minister, Khalid al-Falih, said.
Meanwhile, oil prices crashed yesterday on concerns that a global economic downturn may dent fuel consumption. Brent crude oil futures were at $67.03 per barrel down 13 cents, or 0.2 per cent, from their last close, but not far off the $68.14 per barrel 2019-high reached last week.
The US West Texas Intermediate WTI, futures were at $58.37 per barrel, down 15 cents, or 0.3 per cent, from their last settlement, and also not far off their 2019-high of $58.95 from the previous week.
However, crude markets remain broadly supported by supply cuts led by producer group OPEC and by aggressive sanctions by the United States against Iran and Venezuela.
“The greatest downside risk to our oil price view is demand weakness on slower economic growth. Our base case is that global oil demand will increase by 1.3 million barrels per day (bpd) in 2019. A synchronised global slowdown in growth could push global demand growth to below 1 million bpd,” analysts at Bernstein Energy said on Monday.
Ondo Guber: YIAGA Africa To Deploy 646 Observers
COVID-19:UNICEF Urges Mothers To Sustain Exclusive Breast Feeding , Safety, Hygiene Precautions
Lagos Reverses 2018 Land Use Charge, Waives N5.6bn Penalties
Ogoni Clean-up: Bureaucratic Bottlenecks Hampering HYPREP Activities – ERA/FoEN
Reps Urge PMB To Appoint Coordinator For Amnesty Programme
FUTA Suspends Student Who Hacked Premium Times Website
COVID-19: Kano Govt Spends N425m On Palliatives
NEWS18 hours ago
BREAKING: Edo State Deputy Speaker Impeached
NEWS14 hours ago
Kola Nut Embarrassment: Obaseki Redeploys Protocol Director
NEWS21 hours ago
Gov Yahaya Grants 230 Hectres Of Land For Airforce Operational Base In Gombe
OPINION22 hours ago
Adamu @ 74: Portrait Of A Bridge Builder
AFRICA22 hours ago
Zimbabwean President Vows To ‘Flush Out’ Opponents
NEWS20 hours ago
COVID-19: Doctors Move To Tackle Challenges Of Minorities In Medicine
COLUMNS23 hours ago
Mai Mala Buni: A Leader So Loved By His People
ENTERTAINMENT13 hours ago
#BBNaija: Brighto Quizzes Wathoni On Her “Diss” With Nengi