Novak: Global oil demand may dip by 8Mbpd in 2020
Russia’s Energy Minister Alexander Novak estimated on Wednesday that the global oil demand could drop by 8 million barrels per day in 2020, which is equal to 8% of the entire oil market. “Available storage capacities will be filled in four to five weeks,” the minister warned, explaining that “current oversupply of oil is estimated at 15 million to 20 million barrels per day.”
Reporting at a meeting with Russian President Vladimir Putin and other members of the Government, Novak also said that the spread of the coronavirus pandemic resulted in “a sharp decrease in economic activity” and subsequently in worldwide oil demand, adding that “urgent” reduction of supply was necessary.
Russia has agreed to a two-year output cut in the negotiations with OPEC, Novak noted, thanking Putin for his “personal participation in the negotiations with the United States and Saudi Arabia.”
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