The Organisation of the Petroleum Exporting Countries (OPEC) and its allies are seeking to extend oil cut up to 2.3 million barrels per day till June 2020 to help prices which are hit by the virus spread.
After a three-day extended dialogue between members of the cartel, there was a suggestion for extra 600,000 barrels per day, but Russia Energy Minister, Mr Alexander Novak, said the leader of the OPEC allies needed more time to assess the situation and was not ready to commit.
He also estimated that global demand would drop by 150,000 to 200,000 barrels per day this year due to the epidemic that originated in Wuhan City, China last December.
It is known that Russia is more interested in extending the period of the current cut of 1.7 million barrels per day till June not that which will see an additional 600,000 bpd. This is however subject to approval by producers in OPEC+ who are to meet in Vienna on March 5-6, although the meeting could be brought forward because of concerns surrounding the virus.
The effect of the virus on dwindling prices is more important than many analysts believe as even a strong growth in US employment failed to help the market as it normally would. A report on US employment on Friday showed that the economy added 225,000 jobs in January
