Coronavirus causes imbalance of supply, demand in oil market, Iran's minister says

Iranian Oil Minister Bijan Zangeneh said that the coronavirus has reduced oil demand and caused imbalance between supply and demand.

Zangeneh made the remarks on the sidelines of the 178th extraordinary meeting of the OPEC conference to decide on ways to counter the negative effects of the coronavirus on global demand.

"We have to discuss the decline in production, the number is still uncertain and we are trying to find a way to help the market," he added.

Iran's oil minister reiterated on Wednesday that the outbreak of the coronavirus had no impact on Iranian oil production and the country is now producing its oil the same as before.

Upon his arrival in Vienna and prior to attending an emergency OPEC meeting, Zangeneh told reporters that "we witness a decline in transportation and in cities".

He emphasized that the oil market "is currently in surplus due to the spread of the coronavirus", stating that it is necessary for OPEC and non-OPEC members to do their best to balance the oil market.

According to Zangeneh, at the proposal of the Joint OPEC and Non-OPEC Joint Technical Committee (JTC) and the Secretariat, at least about 500,000 barrels per day should be cut.

The 178th extraordinary meeting of the OPEC conference will start on Thursday as the ministers of OPEC member states will convene to discuss how much each country can further cut their respective production.

At the meeting, oil exporting countries' ministers are set to decide on further cuts in production to counter the negative effects of the coronavirus.

Demand for oil has been declining since the global outbreak of the coronavirus.

OPEC to discuss how to balance coronavirus-related weak oil demand with lower supply.

OPEC will convene in the Austrian capital Vienna from Wednesday till Friday to discuss how to balance coronavirus-related weak oil demand around the world with lower supply.

News Code 191598

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