OPEC Scrambles to React to Falling Oil Demand From China

Officials of some of the world’s largest oil producers are scrambling to stem a sharp fall in prices over concerns that the growing coronavirus epidemic will hit demand from China, the biggest importer.

Over the weekend, officials from the Organization of the Petroleum Exporting Countries, as well as Russia, agreed to meet on Tuesday and Wednesday in Vienna, where OPEC has its headquarters, to discuss the situation in the oil markets, according to two people briefed on the plans.

The big producers are also discussing whether to schedule an emergency ministerial-level meeting later this month, moving up a gathering planned for early March. On the agenda would be production cuts of up to one million barrels a day, or about 1 percent of world supplies, according to a person familiar with the matter.

“They are absolutely trying to put a floor under prices,” said Amrita Sen, chief oil analyst at Energy Aspects, a market research firm.

Article source: https://www.nytimes.com/2020/02/03/business/energy-environment/china-oil-opec.html?emc=rss&partner=rss