One of Opec’s key committee’s is in the middle of a two-day meeting and top of the agenda is likely to be more cuts in production, thanks to the effect of the coronavirus, which is thought to have reduced the country’s demand for oil by as much as 20%.
But that may not stop prices from falling.
Energy economist and founder of Crystal Energy, Carole Nakhle, said the price of oil is unlikely to recover “any time soon” as investors worry about the virus, which has shut down whole cities in China, the world’s second-largest oil consumer.
“If the Chinese economy is hit because of the trade wars or because of the coronavirus, its going to impact negatively and significantly the oil price,” she told Today.
“It all depends on the severity of the coronaviurus, how much further it’s going to spread [and] what are the containment measures.”
The Brent Crude index currently puts the price of oil at $54.47 a barrel.