<div id = "firstBodyDiv" data-bind-html-content-type = "article" data-bind-html-compile = "article.body" data-first-article-body = "
Fears of spreading "Sk", In a sell-off at its first trading session on Chinese stock market, After a vacation Lunar New Year, With the main index incurring losses of $ 393 billion on February 3.
And the repercussions of this frightening spread of the virus, which scientists have not yet found a cure, have spread to several sectors at the forefront. Oil markets, Where it is reported International Energy AgencyThursday, that global oil demand will record its first quarterly decline in a decade, due to the damage done by the spread of Corona (which the World Health Organization has called"Coved 19") China’s economy And its implications for the world.
The agency said in its annual report that "Global demand was affected by the proliferation of the new Corona, and the broad closure of the Chinese economy".
She added it "Oil demand is expected to decrease by 435 thousand barrels compared to the same period in the previous year, in the first quarter of 2020, the first quarterly decline in more than 10 years."When oil demand fell due to The global economic crisis.
In light of the worries surrounding the Chinese economy, it became clear that the impact of the virus was greater than what experts and analysts had expected, which causes many to question the reasons for this effect on Global energy market.
Why did the world oil prices drop?
Energy Market Adviser Mustafa Al-Bazarkan explains in an interview with a site "Sky News Arabia"That oil prices are linked to the supply from the producing and consuming countries, and as the industry of the second largest oil importer is affected by the virus, demand will decrease".
Al-Bazerkan added: "Besides the decline in Chinese industry, many flights to and from China were canceled, and maritime transport operations decreased, which affected demand, so oil prices fell.".
China’s oil demand plummeted due to travel restrictions to and from the country and quarantine in some of its regions, where the Chinese National Chemical Corporation said it would shut down a 100,000-bpd complex and reduce processing rates for two other compounds.
Global growth in demand slowed
And reduced "OPEC"Wednesday, its forecast for global growth in oil demand this year, due to an outbreak "Sk"And, she said, her production fell sharply in January, as producers implement a new deal to curb supply.
The Organization of the Petroleum Exporting Countries"OPEC" In a monthly report, global demand for oil this year is expected to grow by 990,000 bpd, down 230,000 bpd from its previous forecast.
Since January 1, it has been implemented "OPEC" Russia and other producers, under what is known as a group "OPEC +", An agreement to cut production by 1.7 million barrels per day to support the market.
The report quoted secondary sources that commitment "OPEC" The cuts exceeded the requirement in January, as it reduced supplies by 509 thousand barrels per day to 28.86 million barrels per day.
Commenting on the report, Al-Bazarkan said that "OPEC" They tend to be transparent with regard to the numbers they reveal, and it is clear that the reduction is due to spread "Sk" And low demand, in addition to the increase in US oil production to exceed 13 million barrels per day.
As for his forecast on global oil markets this year, Al-Bazerkan said that it is related to three parties "OPEC" The oil producing countries outside the organization, led by Russia, in addition to the United States of America, have a responsibility to reduce production.
The consultant went on to say in the energy markets: "So far the picture is not clear regarding the fate of Corona, and therefore the issue of the measures to be taken remains that way, but it is almost certain that oil prices will witness fluctuations this year, and will often range between 58-62 dollars per barrel.".
Despite the seemingly unfavorable conditions regarding the oil markets, there is a glimmer of hope referred to in the report of the International Energy Agency, which expected the growth of demand for "black gold" In the second quarter of this year, 1.2 million barrels per day, then returning to normal in the third quarter, with a growth of 1.5 million barrels per day in light of expected stimulus measures from China.
Also taught a group "OPEC +" According to sources, an extraordinary meeting was held to consider deepening cuts in production, to maintain The stability of oil prices.
“>
And fears of the spread of “Corona”, in a wave of selling in the first trading sessions in the Chinese stock market, after the lunar New Year holiday, to cause the main index losses amounted to $ 393 billion in the third of February.
And the repercussions of this frightening spread of the virus, which scientists have not yet found a cure, have extended to multiple sectors, the forefront of which is the oil market, as the International Energy Agency reported, on Thursday, that global demand for oil will record its first quarterly decline in a decade, due to the damage caused by the spread of Corona (Which the World Health Organization calls “Covid 19”) the Chinese economy and its implications for the world.
The agency said in its annual report that “global demand was affected by the spread of the new corona, and the wide closure of the Chinese economy.”
She added, “It is expected that the demand for oil will decrease by 435 thousand barrels compared to the same period of the previous year, in the first quarter of 2020, the first quarterly decrease in more than 10 years,” when the demand for oil decreased due to the global economic crisis.
In light of the climate of concern surrounding the Chinese economy, it became clear that the impact of the virus was greater than what experts and analysts had expected, which causes many to question the reasons for this impact on the global energy market.
Why did the world oil prices drop?
Energy consultant Mustafa Al-Bazarkan explains in an interview with “Sky News Arabia” that oil prices are linked to the supply from producing and consuming countries, and with the industry of the second largest oil importer affected by the virus, demand will decrease.
Al-Bazerkan added, “Besides the decline of Chinese industry, many flights to and from China were canceled, and maritime transport operations decreased, which affected the demand, and oil prices decreased.”
China’s oil demand plummeted due to travel restrictions to and from the country and quarantine in some of its regions, where the Chinese National Chemical Corporation said it would shut down a 100,000-bpd complex and reduce processing rates for two other compounds.
Global growth in demand slowed
On Wednesday, OPEC lowered its forecast for global growth in oil demand due to the Corona outbreak, and said its production fell sharply in January, as producers implemented a new deal to reduce supply.
The Organization of Petroleum Exporting Countries “OPEC” said in a monthly report that it is expected that the global demand for oil this year will grow by 990 thousand barrels per day, down 230 thousand barrels per day from its previous expectations.
Since January 1, OPEC, Russia and other producers have implemented, within the framework of what is known as the “OPEC +” group, an agreement to reduce production by 1.7 million barrels per day to support the market.
The report quoted secondary sources that “OPEC” commitment to cuts exceeded the required in January, as it reduced supplies by 509 thousand barrels per day to 28.86 million barrels per day.
Commenting on the report, Al-Bazarkan said that “OPEC” tends to be transparent in terms of the figures it reveals, and that the reduction is due to the spread of “Corona” and low demand, in addition to the increase in US oil production to exceed 13 million barrels per day.
As for his forecasts on world oil markets this year, Al-Bazarkan said that the matter is related to three parties, “OPEC” and the oil producing countries outside the organization, led by Russia, in addition to the United States of America, and it is their responsibility to reduce production.
The consultant continued in energy markets, saying: “So far the picture is not clear regarding the fate of Corona, and therefore the issue of the measures to be taken remains that way, but it is almost certain that oil prices will witness fluctuations this year, and will often range between 58-62 dollars a barrel.”
Despite the seemingly unfavorable conditions regarding the oil markets, there is a glimmer of hope referred to in the report of the International Energy Agency, which predicted the growth of demand for “black gold” in the second quarter of this year, 1.2 million barrels per day, and then returned to normal in the third quarter with growth of 1.5 million Barrels per day in light of expected stimulus measures from China.
According to sources, the “OPEC +” group is considering holding an extraordinary meeting to consider deepening production cuts in order to maintain the stability of oil prices.
– .
