OPEC Crude Oil Price Drops 5.8% To $ 55.51 Per Barrel

Vienna, Feb 4 (EFE) .- The oil price of the Organization of Petroleum Exporting Countries (OPEC) has dropped 5.8% on Monday, amid the uncertainty about the coronavirus in China, to settle at 55, $ 51 per barrel, the energy group reported in Vienna.

The sharp decline coincides with the start today of a technical level meeting of OPEC experts and some of its allied producers, such as Russia, to analyze the situation in the markets.

The meeting, held in Vienna, is scheduled to end tomorrow, Wednesday, when a statement is expected that details the recommendations of the technical committee for the next ministerial meeting of OPEC and its allies, scheduled for the first week of March.

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Since last January 6, the price of OPEC oil, calculated as an average of its member countries, has already fallen by 22.6%, which has alarmed the producing countries.

According to OPEC sources on Sunday, cited by EFE Dow Jones, Saudi Arabia, the group’s main producer, raises a drastic and short-term reduction in production, which could be around half a million barrels a day.

OPEC, made up of 13 partners, meets regularly with 10 other producers, led by Russia, to coordinate measures to influence the price of oil.

Last December, these producers decided to deepen, from 1.2 to 1.7 million barrels per day (MBD), a cut in production during the first quarter of 2020 to maintain prices.

At the meeting scheduled for March OPEC can extend the current cuts until at least June, with the possibility of a deeper cut if the demand for oil in China is greatly affected by the spread of the coronavirus. EFE

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