While demand from China is robust, prices are struggling to push higher as coronavirus cases rise and Libyan supplies recover after a lengthy halt
Oil extended declines as Opec+ warned of a precarious outlook for the market while a resurgent virus hits consumption.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman, speaking at the coalition’s committee meeting on Monday, called on the group to be proactive in the face of uncertain demand. The comments are strengthening expectations that Opec
and its allies will delay plans to restore 2 million barrels of halted output at the start of next year.
“The main focus is going to be: look, let’s delay the taper, and the conversations are going to be around for how long,” Amrita Sen, chief oil analyst at consultant Energy Aspects, said in a Bloomberg television interview.
While demand from China is robust, prices are struggling to push higher as coronavirus cases rise and Libyan supplies recover after a lengthy halt. Meanwhile, more US stimulus remains elusive as time draws short to reach an agreement on a bill that could pass by the election.
While the demand recovery has slowed due to multiple outbreaks of the virus, it hasn’t stopped altogether, Russian Energy Minister Alexander Novak said in his opening remarks to Opec+ Joint Ministerial Monitoring Committee on Monday. Novak’s comments are the best indicator that the group is likely to delay plans to taper output cuts, according to UBS Group AG.