The United Arab Emirates does not expect the oil market to excessively react to a possible decrease in demand due to the new coronavirus outbreak in China, UAE Energy Minister Suhail Mohamed Faraj Al Mazroui said on Monday
DOHA (Pakistan Point News / Sputnik - 27th January, 2020) The United Arab Emirates does not expect the oil market to excessively react to a possible decrease in demand due to the new coronavirus outbreak in China, UAE Energy Minister Suhail Mohamed Faraj Al Mazroui said on Monday.
Investors have raised concerns that the rapid spread of the virus could affect the world market, including oil demand. As of last week, oil prices have fallen their most in over a year. In addition, according to trading data, the price for Brent crude oil has fallen by more than 3 percent as of Monday morning.
"[Oil] markets will hardly over-react to a possible impact of the coronavirus outbreak on oil demand," Al Mazroui said, adding that the oil market is driven by "psychological factors."
The minister also said that he was confident in the ability of China and the international community to bring the virus outbreak under control. He added that the Organization of Petroleum Exporting Countries (OPEC) and its partners led by Russia would meet in March to discuss all options for ensuring a balanced oil market.
Earlier on Monday, Saudi state media reported, citing Energy Minister Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, that Saudi Arabia and other OPEC+ countries had enough capabilities and flexibility to maintain stability in the global oil market amid the new outbreak.
The unknown type of viral pneumonia, which was first detected in the Chinese city of Wuhan in late December, has already killed over 80 people and infected more than 2,700 others in China. Japan, Thailand, South Korea, Vietnam, Singapore, Nepal, France, the United States, Malaysia, Australia and Canada have also confirmed cases of the infection since the outbreak began.