Tehran (IP) - Given the increase in supply and decrease in demand, as well as the uncertainty regarding the time when the Coronavirus will end, the oil market needs global cooperation, and OPEC alone cannot solve the problem of the oil market.

Iran Press/Iran news: Iranian Oil Minister Bijan Namdar Zanganeh said today 22 April on the sideline of the cabinet session, "In the coronavirus crisis, which has led to a sharp decline in oil consumption, a significant part of the aviation industry has been shut down and this has reduced fuel consumption.”

Noting that demand for crude oil has fallen sharply, Zanganeh said estimates in the second quarter of the year showed that the market would face a three-million-barrel increase in supply over demand, but with the spread of coronavirus, the number had reached to 14 million barrels, which means that the 11 million barrels of demand reduction in the second quarter of this year is due to COVID-19 disease.

With the outbreak of coronavirus, the demand for oil was declining, but since around 2 months ago, we have had the phenomenon of the price war, which some producers started producing lots of oil and intensified the crisis.

Zanganeh stressed that additional oil was offered to the markets in April, but according to a decision on reducing production, 10 million barrels of oil will be reduced from May 1 and this will gradually affect the market.

Noting that OPEC's (the Organization of the Petroleum Exporting Countries) actions alone are not enough, he added that OPEC and non-OPEC producers should reduce production. Just as the whole world must work together to fight coronavirus, there must be cooperation to balance the oil market.


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