Iran Oil Minister Says China's Virus Impacted Oil Demand

Iranian Oil Minister Bijan Zanganeh said on Monday that the spread of China’s new coronavirus had hit oil demand and called for an effort to stabilize oil prices, Iran’s official news agency IRNA reported.

The minister also said Iran would agree to an earlier OPEC meeting if the rest of the group’s members agreed to oil production cuts. OPEC and its allies, a group know as OPEC+, are considering meeting in February instead of March.

“The oil market is under pressure and prices have dropped to under US$60 a barrel and efforts must be made to balance it,” Zanganeh said. Speaking to reporters, he continued, “As a result of the outbreak of this virus in China and the subsequent shutdown of some factories, transportation system, etc., the amount of oil consumption in this country has been affected leading to a reduced demand for crude oil.”

He said that reduced demand and stabilization of supply had spurred a downward trend in oil prices, adding, "In a conversation I had with OPEC President, I said that if a meeting was to be held prior to a scheduled meeting in March, there has to be preparedness and assurance about reducing production by all members, but if we are to negotiate at an extraordinary meeting and then make a decision, there is no necessity for holding an early meeting and the 178th Meeting - on the same date (March 4-5) would be held.” - Reuters, Shana