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DUBAI, March 3 (Reuters) - Kuwait's oil minister said on
Tuesday he is optimistic about the outcome of OPEC meetings this
week despite the "noticeable" impact of the coronavirus outbreak
on the global oil markets during the past month, Kuwait state
news agency KUNA reported.
"Marathon" meetings will be held during by the Organization
of Petroleum Exporting Countries and its allies to reach an
agreement on the best ways to restore stability and balance to
the global oil market, Kuwaiti minister Khaled al-Fadhel told
KUNA before heading to Vienna to attend the
meetings. "We are optimistic on the expected outcome of the meetings
and the continued cooperation among the OPEC+ alliance," he
said.
"Global oil markets have been noticeably impacted during the
past month following the new coronavirus outbreak which
noticeably reduced oil demand and negatively affected the
prices," he added.
The International Energy Agency (IEA) said global oil demand
growth has fallen by 435,000 bpd in the first quarter to its
lowest level in a decade, and said that this forecast may be
revised even further. OPEC countries have been debating whether to further reduce
oil production by one million barrels per day (bpd), among other
options, as it seeks to stabilise falling prices. That is more
than an initially proposed cut of 600,000 bpd.
The group and its allies led by Russia known as OPEC+ agreed
in December a collective cut of 1.7 million barrels per day
(bpd) to their supply until the end of this month.
The Kuwaiti minister stressed the importance of eliminating
the expected surplus in global oil inventories especially during
the second quarter of this year, following the big decline in
global markets due to the impact of the new coronavirus
outbreak.
The global death toll has now risen above 3,000, with more
than 86,500 infections, and the virus is now spreading outside
China at a much faster rate than within the country where it
began.