OPEC alliance eyes technical meeting Tues, Weds to discuss coronavirus: sources

London — OPEC and its allies may hold a delegate-level technical committee meeting this coming Tuesday and Wednesday to potentially coordinate deeper production cuts in response to the coronavirus outbreak, two sources told S&P Global Platts.

The gathering of the Joint Technical Committee in Vienna would be held instead of moving up the full ministerial meeting, which is still scheduled for March 5-6, the sources said. Urged by Saudi Arabia, the 23-country coalition known as OPEC+ had debated moving forward the ministerial meeting, but not all members had been supportive.

The JTC is co-chaired by delegates from Saudi and non-OPEC Russia. It is typically tasked with reviewing compliance with the coalition's production quotas and analyzing market conditions.

The OPEC+ alliance in January implemented a 1.7 million b/d production cut accord that is scheduled to run through the end of March. OPEC sources have said extending the cuts, or deepening them, are among the options being debated.

The spread of the coronavirus, which has sickened nearly 12,000 people globally and killed at least 259, has stoked fears of an economic contraction in China, where the infection started, and hit jet fuel demand. China is the biggest crude importer and is a key market for several OPEC members. Many Chinese refineries have already slashed their crude runs.

Several airlines have canceled flights to and from China, and oil prices have slid some 13% over the past two weeks.

Russian energy minister Alexander Novak had said Friday that Russia was prepared to bring forward the March OPEC+ meeting to February and stood ready to react, if needed, to stabilize falling oil prices.