Following the coronavirus outbreak, an OPEC, non-OPEC technical panel proposed extending a current oil supply cut pact until the end of 2020, afraid that the impact of the coronavirus the oil and gas industry will be severe.
Specifically, Algeria’s oil minister Mohamed Arkab reported that the Joint Technical Committee (JTC) held in Vienna proposed extending voluntary production adjustments under the ‘Declaration of Cooperation’ process until the end of 2020 and to proceed with an additional adjustment until the end of the second quarter.
Also, the JTC concluded its meeting on Thursday, February 6.
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Thus, Arkab added that the outbreak has negatively affected economic activities, mostly on the transport, tourism and industry, in China particularly, and also increasingly in the Asian region and gradually in the world.
This is similar to BIMCO’s Peter Sand statement who highlighted that the coronavirus spread and the shutdown of China will temporarily impact the shipping markets and negatively affect freight rates.
