Saudi Arabian energy think-tank has called for worldwide co-operation to unravel the emergency in worldwide oil markets
The King Abdullah Petroleum Studies and Research Center (KAPSARC) said that the “unprecedented disruption” of recent weeks on the world’s energy markets required “greater international co-operation with the Organization of the Petroleum Exporting Countries (OPEC).”
Research study entitled “The world needs OPEC, but OPEC can’t go it alone,” the center argued that such co-operation was “the only short-term resolution to the current oil market crisis.”
The paper comes in the midst of moves within the universal vitality community for a few shape of combined approach by the three huge makers — Saudi Arabia, the US and Russia — to stabilize markets.
In past weeks there has been unprecedented energy volatility which has seen the price of crude fall by half on international markets amid record drops in demand for crude as national economies shut down because of restrictions to combat the coronavirus outbreak.
Energy experts have estimated that global demand for oil has fallen by at least 20 percent in the past month, and that storage facilities around the world are rapidly filling with crude.
Some big producers in the US are believed to be considering shutting oil facilities as prices in local markets reach “negative” levels, meaning that the oil companies pay customers to take crude away.
SOURCE : ARABNEWS