MOSCOW (Reuters) - A new OPEC+ deal to balance oil markets might be possible if other countries join in, Kirill Dmitriev, head of Russia’s sovereign wealth fund said, adding that countries should also cooperate to cushion the economic fallout from coronavirus.
Goldman Sachs forecast global oil demand is expected to contract by around 4.25 million bpd, from 100 million barrels per day (bpd) last year. “Global isolation measures are leading to an unprecedented collapse in oil demand,” it said. WTI Crude is $23.96; Brent is $27.29.
As large parts of the global economy shut down to stop the spread of the coronavirus, neither Saudi Arabia nor Russia show any sign of backing down on threats to pump more oil to gain market share. WTI Crude is $23.67; Brent is $26.19.
WTI Crude is up over 5% at 6:30 AM Central. At current price levels focus is going to be back on production, as high-cost producers struggle to keep pumping. WTI Crude is $24.63; Brent is $26.18.
Some traders estimate crude demand will collapse by as much as 20 million barrels a day this year. Texas Railroad Commissioner Ryan Sitton on Friday landed an invitation to attend OPEC’s June meeting, but hopes for an agreement began to unravel just hours later as his call to curb output was criticized by regulators and drillers. WTI Crude is $22.23; Brent is $25.53.
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