Oil falls to doubts about demand and fears of not agreeing to cut production

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SINGAPORE: Oil fell 1 percent today, Friday, as worries about global demand for crude and economic growth fueled due to an outbreak of the Corona virus, in light of non-OPEC producers agreeing to further cut production to support prices.

By 0735 GMT, Brent crude was down 49 cents, or 0.98 percent, to $ 49.50 a barrel, while US West Texas Intermediate crude fell 46 cents, or 1 percent, to $ 45.44 a barrel.

On Thursday, the Organization of Petroleum Exporting Countries (OPEC) urged to cut production with its allies – within the framework of the group called OPEC + – 1.5 million additional barrels per day until the end of 2020. This came before the OPEC + meeting scheduled in Vienna today.

OPEC ministers said that non-members are expected to participate in five hundred thousand barrels per day of the total additional reduction. But Russia and Kazakhstan, two members of OPEC +, have said that there is no agreement yet to deepen the cut, which could lead to the collapse of cooperation that has supported crude prices since 2016.

Some analysts expect Moscow to eventually adopt the deal.

(Reuters)

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