Opec started 2020 with production down more than 2mn b/d year-on-year, as production averaged just 28.25mn b/d over the course of January. Yet growing concerns over the impact of the coronavirus on the global economy, and especially that of China (MEES, 7 February), has forced Opec and its allies to publicly debate cutting deeper still.
Given that the Opec+ alliance has been enforcing cuts almost continuously since January 2017, dividing up deeper cuts will be no easy task. But as oil prices have slumped amid concerns over dramatic falls in China’s demand, deeper cuts look increasingly necessary. (CONTINUED - 991 WORDS)
