Minister of Energy: Kingdom, other OPEC+ producers have capability, flexibility to respond to any changes in global oil market resulting from gloomy expectations about impact of coronavirus outbreak on Chinese, global economy

Monday 1441/6/2 - 2020/01/27
  • Share on Google+

Riyadh, January 26, 2020, SPA -- Saudi Minister of Energy announced that the Kingdom is closely monitoring the developments in the global oil market resulting from the gloomy expectations about the impact of the coronavirus outbreak on the Chinese and the global economy and oil market fundamentals. The Minister expressed his confidence in the ability of the Chinese government and the international community to fully eradicate the coronavirus and contain its spread.
The Minister indicated that the current impact on global markets, including oil and other commodities, is primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand. Such extreme pessimism occurred back in 2003 during the SARS outbreak though it did not cause a significant reduction in oil demand. The Energy Minister stressed that the Kingdom of Saudi Arabia and other OPEC+ producers have the capability and flexibility needed to respond to any developments, by taking the necessary actions to support oil market stability, if the situation so requires.
03:01 LOCAL TIME 00:01 GMT