OPEC partners and their main ally, Russia, will hold a meeting in Vienna tomorrow and Wednesday to assess the effect of the coronavirus on the oil market, at a time when crude oil has lost about 15% of its value since beginning of the year
The Joint Ministerial Supervisory Committee, formed by three countries of the Organization of Petroleum Exporting Countries (OPEC) and two of its allies, will hold a meeting closed to the press, a source close to the oil organization informed Efe.
This committee will analyze the situation and may offer a recommendation for the next OPEC ministerial meeting and its allies, known as OPEC +.
That meeting is scheduled for March 5 and 6, but some producers ask to advance the meeting in the face of price drops due to the effect that restrictions on containing the virus have on the Chinese economy.
The Asian country is the largest importer of crude oil in the world and a drop in its consumption can have a strong impact on prices.
OPEC, made up of 13 partners, meets regularly with 10 other producers, led by Russia, to coordinate measures to influence the price of oil.
Last December, these 23 producers decided to deepen, from 1.2 to 1.7 million barrels per day (MBD), a cut in production during the first quarter of 2020 to maintain prices.
At the meeting scheduled for March OPEC can extend the current cuts until at least June, with the possibility of a deeper cut if the demand for oil in China is greatly affected by the spread of the coronavirus.