{"id":1168355,"date":"2020-02-27T18:09:40","date_gmt":"2020-02-28T00:09:40","guid":{"rendered":"https:\/\/www.mining.com\/?p=1015461"},"modified":"2020-02-27T18:09:40","modified_gmt":"2020-02-28T00:09:40","slug":"crude-market-hit-by-coronavirus-demand-shock-report","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1168355","title":{"rendered":"Crude market hit by coronavirus demand shock \u2013 report"},"content":{"rendered":"<p>The impact of the coronavirus has sent shockwaves across the oil market, says Oxford Economics, an independent global advisory firm. <\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>In its latest publication, Oxford has lowered its year-over-year global demand growth forecast in 2020 to 0.72 mb\/d from 1.09 mb\/d previously. However, it still foresees a &#8220;fairly balanced&#8221; market for the year.<\/p>\n<p>On the supply side, the firm expects the current OPEC+ output cut agreement to be extended to year-end, Libyan and Venezuelan outlooks to deteriorate further, and US shale output to slow. <\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignleft is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/image-24.png\" alt=\"\" class=\"wp-image-1015470\" width=\"338\" height=\"248\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/image-24.png 844w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/image-24-300x220.png 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/image-24-768x563.png 768w\" sizes=\"(max-width: 338px) 100vw, 338px\" \/><figcaption>Global demand changes from previous month by coronavirus outbreak scenario<\/figcaption><\/figure>\n<\/div>\n<p>Demand should recover sharply in the second half of 2020 as the knock-on effects on fundamentals from the coronavirus outbreak are confined to the first half. For 2021, the global balance remains unchanged at 0.2 mb\/d surplus.<\/p>\n<p>Given the current state of the crude market, Oxford estimates Brent to average $62.2\/b in 2020 and $66.7\/b in 2021, but demand-side risks that can drag prices down to the low $50\/b range remain elevated in the near-term.<\/p>\n<p>At their meeting next month, OPEC+ producers need to weigh with extreme caution the likelihood of severe demand risks materializing if the coronavirus is not contained soon, Oxford cautioned.<\/p>\n<p>If OPEC+ were to delay their response to the second half of 2020, this would require the group to nearly double the recommended cut of 0.6 mb\/d to sustain prices in the low $60\/b range for the rest of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Demand should recover sharply in the second half of 2020.<\/p>\n","protected":false},"author":88,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1168355"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/88"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1168355"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1168355\/revisions"}],"predecessor-version":[{"id":1168356,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1168355\/revisions\/1168356"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1168355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1168355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1168355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}