OPEC+ committee will look at demand destruction
On Sunday China said it will allow non-essential sectors to be flexible in how the resume operations after the lunar new year holiday to avoid the virus spread. In a service-oriented, tech economy many workers can work from home but that’s not the case at factories. I certainly wouldn’t want to be on the production line beside someone with a cough right now.
OPEC is trying to gauge how much demand will be impaired over the next few months. The rumor is that they’re looking at a 500K bpd cut. I expect that if they do announce that kind of measure it will be Saudi Arabia once again bearing the brunt of it.
The bigger swing factor at the moment is Libya, which has about 1 mbpd shut in because general Haftar has blocked key ports in the civil war.