Independent journal on economy and transport policy
10:13 GMT+1
This page has been automatically translated by Original news
OPEC has decided to cut oil production to address the effects on the economy of the health emergency
For the May-June two-month period, a reduction of 10 billion barrels per day was decided, which is insufficient according to many observers
April 10, 2020
The long-awaited agreement was reached at the first conference Minister for OPEC and non-OPEC countries after the spread Covid-19 pandemic and the consequent impact of the Covid-19 health emergency on economic activities, crisis OPEC Secretary-General Mohammad Sanusi Barkindo, introducing the work of the conference - that has spared no sector of the economy. "Relatively oil market, he said, completely overwhelmed the fundamentals of market supply and demand since the last time that we met on March 6. If in the first week of March - recalled Barkindo -- the rather depressing prospects, in a little more than a month have changed dramatically. The fundamentals supply and demand, he said, are terrifying. The expected excesses of volume supply on the market, in particular in the second quarter of 2020, they go beyond anything seen Before. Our industry, Barkindo added, is bleeding out and no one was able to stop hemorrhage. We are already seeing some of the companies that declare bankruptcy and the loss of tens of thousands of jobs. Data and analytics presented and deliberated today -- noted the Secretary-General OPEC - highlight the scale of the great challenge waits."
OPEC's response to the challenge that - according to several observers - however, proved insufficient, as would show the fall in the price of oil in the last few hours. According to them, in fact, the dramatic shock that the pandemic has provoked on economies and that - as admitted by the same Secretary-General of OPEC -- had a very serious impact on the oil market, would have had a much more negatively impacted demand for petroleum products compared to evidently perceived by OPEC that - according to these observers -- he planned production cuts absolutely insufficient to deal with the crisis.
- Via Raffaele Paolucci 17r/19r - 16129 Genoa - ITALY
phone: +39.010.2462122, fax: +39.010.2516768, e-mail
VAT number: 03532950106
Press Reg.: nr 33/96 Genoa Court
Editor in chief: Bruno Bellio No part may be reproduced without the express permission of the publisher
The long-awaited agreement was reached at the first conference Minister for OPEC and non-OPEC countries after the spread Covid-19 pandemic and the consequent impact of the Covid-19 health emergency on economic activities, crisis OPEC Secretary-General Mohammad Sanusi Barkindo, introducing the work of the conference - that has spared no sector of the economy. "Relatively oil market, he said, completely overwhelmed the fundamentals of market supply and demand since the last time that we met on March 6. If in the first week of March - recalled Barkindo -- the rather depressing prospects, in a little more than a month have changed dramatically. The fundamentals supply and demand, he said, are terrifying. The expected excesses of volume supply on the market, in particular in the second quarter of 2020, they go beyond anything seen Before. Our industry, Barkindo added, is bleeding out and no one was able to stop hemorrhage. We are already seeing some of the companies that declare bankruptcy and the loss of tens of thousands of jobs. Data and analytics presented and deliberated today -- noted the Secretary-General OPEC - highlight the scale of the great challenge waits."
- Via Raffaele Paolucci 17r/19r - 16129 Genoa - ITALY
