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In Response to Coronavirus, Russia Will Back Only Modest Action by OPEC+

Greg Priddy
Director, Global Energy and Middle East, Stratfor
Feb 11, 2020 | 10:30 GMT
Employees of PetroChina Southwest Oil & Gasfield Co., a CNPC subsidiary, work at a natural gas purification plant in Suining in southwest China's Sichuan province on Jan. 15, 2020.

Employees of PetroChina Southwest Oil & Gasfield Co., a CNPC subsidiary, work at a natural gas purification plant in Suining in southwest China's Sichuan province on Jan. 15. The impact of the new coronavirus outbreak on the oil market is unavoidable.

(Feature China/Barcroft Media via Getty Images)

It is now clear that the impact of the new coronavirus on the world oil market will be substantial, but much uncertainty remains about the total impact on demand in 2020. The most probable scenario is a "sharp but short" hit to demand, but a wider spread could deepen and lengthen the impact. OPEC and other producers will attempt to at least partially mitigate the impact on oil prices, but Russia will likely insist on a cautious approach that does not last long....

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