US Energy Secretary Dan Brouillette has stated that the novel coronavirus has not had a dramatic effect on energy markets.
However, he noted that the effect on the market could worsen if the virus continues to spread.
“I think the impact has been marginal,” Brouillette said as carried by Reuters.
The oil price slide since the beginning of the year—trigged by the coronavirus epidemic.
The price of a WTI barrel that was trading at $62.70 just one month ago is now trading at $50.45 per barrel—a drop of more than $12 per barrel, or nearly 20%, in just 30 days.
The price of a Brent barrel, trading at $68.91 a month ago, has sunk to $54.52, a drop of over $14 per barrel, or nearly 21%.
And it’s more than just fearful trades.
OPEC, too, feels that the effects have been dramatic enough to hold an emergency meeting to discuss the possibility of deeper or longer production cuts, even as OPEC member Libya is already producing 1 million bpd under its typical amount.
The death toll from the coronavirus has risen to over 638, with all but two of them limited to China. More than 31,000 people have been affected.
Source: www.energynewsafrica.com