Minister of Oil and Acting Minister of Electricity and Water Dr. Khaled Al-Fahdel said on Friday that Mexico was hindering the OPEC+ meeting aimed at decreasing output by ten million barrels per day.
On his official Twitter account, Minister Al-Fadhel indicated that hoped that the ninth extraordinary OPEC and non-OPEC Ministerial Meeting would reach an agreement to bring on a stability to the oil market. The OPEC+ meeting concluded at 3:00 am local-time and it was held on a closed webinar. On Thursday, OPEC Secretary-General Mohammad Barkindo said that the novel coronavirus (COVID-19) pandemic has had devastating impacts on all economic sectors, including the energy market.
“The supply and demand fundamentals are horrifying; the expected excess supply volumes on the market, particularly in the 2Q-20, are beyond anything we have seen before,” Barkindo stressed. “Only one month ago at the meetings in Vienna, expected 2020 global GDP growth was 2.4 percent. “Today, it is a negative 1.1 percent. It is incredible to think that the global contraction is far greater than that for the Great Recession of 2008-09,” he pointed out.
“The outlook for non-OPEC supply growth in 2020 has also fallen by over 1.5 mb/d, although this is nowhere near the drop for oil demand,” he went on. “The OPEC Reference Basket has fallen from USD 52.7 pb in March 2020 to below USD 20 pb in early April, a decline of around 70 percent.”
“The OPEC Secretariat’s assessment of available global oil storage capacity stands over one billion barrels. “Given the current unprecedented supply and demand imbalance there could be a colossal excess volume of 14.7 mb/d in the 2Q-20. “This oversupply would add a further 1.3 billion barrels to global crude oil stocks, and hence exhaust the available global crude oil storage capacity within the month of May,” Barkindo explained.
“It was when oil producers lost trillions of dollars in foregone revenues, and globally more than USD one trillion was lost in terms of investment,” he regretted. “For the current quarter, around 15 percent of global oil consumption has evaporated and this huge market imbalance needs to be urgently addressed,” he added.
Source:KUNA
Read Today's News TODAY... on our Telegram Channel click here to join and receive all the latest updates t.me/thetimeskuwait
