Saudi Arabia and other OPEC+ countries have enough capabilities and flexibility to maintain stability in the global oil market amid the outbreak of the new coronavirus in China, Saudi state media reported on Monday, citing Energy Minister Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud
MOSCOW (Pakistan Point News / Sputnik - 27th January, 2020) Saudi Arabia and other OPEC+ countries have enough capabilities and flexibility to maintain stability in the global oil market amid the outbreak of the new coronavirus in China, Saudi state media reported on Monday, citing Energy Minister Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud.
The new form of viral coronavirus was first reported in China's Wuhan in December. According to the latest data from China's National Health Commission, 80 people have died and and over 2,700 cases have been confirmed in China. Cases have been reported in other countries, including Canada, France and the United States. Investors fear that the rapid spread of the virus could negatively affect the global economy, including oil demand. According to trading data, the price for Brent crude oil has fallen more than 3 percent as of Monday morning.
"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," the SPA news agency said.
The media added that the Saudi energy minister expressed confidence that China and the world community would completely wipe out the virus.
