Like many other markets, the oil price in 2020 has taken a hit due to the coronavirus outbreak. And due to the drop we can see in the oil chart analysis, OPEC has called for additional cuts to production. Namely, officials have called for cuts of 600,000 bpd, but Russia isn’t quite on board with this decision yet.
The emergency meeting took place in Vienna as a result of the plunge that oil prices took right after news of the Chinese coronavirus began to spread. And in truth, this effect was foreseen, so the oil price analysis did see prices go down just before there was official information on lower sales.
But for now, the negotiations on these latest oil production cuts seem to be rather tough. And there’s no telling if indeed they will have any impact on the further oil price in February 2020. For instance, Libya’s production has dropped a whopping 1 million bpd, which is a significant number even for the global output. Yet this had little to no sway over the oil price chart, so that’s something worth taking into account as far as the oil price forecast goes.
And as for the ongoing correlation of the coronavirus and oil, news of a breakthrough in developing a treatment might see the oil chart move up again.
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