WEEKLY ENERGY RECAP: All eyes on OPEC+ virtual talks

As crude prices plunge, Iraq's oil sector is facing a triple threat that has slashed revenues, risks denting production and may spell trouble for future exports. (AFP file photo)
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Updated 05 April 2020

WEEKLY ENERGY RECAP: All eyes on OPEC+ virtual talks

  • With the coronavirus pandemic cutting oil consumption across the world, the boom in demand for storing oil has been key in absorbing excess barrels from the market in recent weeks

Oil prices jump by more than a quarter on expectations that OPEC+ will hold a virtual meeting to reinstate efforts to support the collapsing market.

Brent crude price rose to $34.11 per barrel and WTI increased to $28.34 per barrel.

Only a week earlier, a $2 trillion stimulus package from the US government was not enough to stabilize the market which had dropped to levels not seen since the early 2000s.

The slump follows global isolation measures that have decimated oil demand all over the world. That is because almost two thirds of the world’s daily oil consumption goes as fuel for transportation.

Global oil demand is about 100 million barrels of oil per day. Some forecasters predict as much as a quarter of that has disappeared in the past few weeks. 

It means that global energy demand is in free fall and consumption may decline by as much as 25 to 30 million barrels a day.

That will force many producers of high cost barrels worldwide to slash output.

The loss of so many barrels represents a structural shift in oil market dynamics and the supply- and-demand balance. 

This is reflected by the sudden drop in the miles traveled by cars and buses and the closure of borders, paralyzing travel both within and between countries.

Global refiners have slashed their crude oil runs while the coronavirus outbreak has sent refinery margins crashing as transport fuel demand evaporates.

With the coronavirus pandemic cutting oil consumption across the world, the boom in demand for storing oil has been key in absorbing excess barrels from the market in recent weeks.


Egyptian state banks collect over $10bn from high-yield savings product

Updated 56 min 16 sec ago

Egyptian state banks collect over $10bn from high-yield savings product

CAIRO: Egypt’s two biggest state banks have collected 171 billion Egyptian pounds ($10.5 billion) from a new high-yield savings product they introduced in March, officials from the two banks were quoted as saying on Saturday.
The one-year product, launched on March 22, carry a 15% yield.
An official at the National Bank of Egypt said it had collected 122 billion pounds, while Banque Misr’s chairman said it had gathered 49 billion pounds, state news agency MENA reported.