OPEC and it's ally Russia are planning to conduct talks over whether to cut down on crude oil production due to the virus outbreak. The meeting is set in Vienna according to Iraq's oil ministry.
According to Assem Jihad, reduction in output will depend on the current needs of the market and how it is being affected by the current coronavirus epidemic. Should there be cuts in the output it will be announced in a ministerial meeting according to him.
Since the outbreak crude prices have tumbled in the world's second-biggest economy which is a huge consumer of crude. WTI, the US's benchmark oil contract has fallen by around 18% over the past month.
Saudi Arabia commented that the impact on oil demand was "extremely limited" and "driven by psychological factors". Neil Wilson on the other hand, chief market analyst for Markets.com in London, is concerned that the market could be hit more severely if the virus continues to spread. He sees greater impact on the market should the lockdown in Chin and travel restrictions persist due to the outbreak.
The sentiment is shared by Alexander Novak, energy minister for Russia who said that the crisis could lead to lower demand for hydrocarbon fuels.
Majority sentiment is that China will contain and manage the virus situation in their country and that it will soon be over.