Saudi Arabian KSA energy think-tank has called for global cooperation to solve the crisis in global oil markets.
Arab news reports that King Abdullah Petroleum Studies and Research Center (KAPSARC) KSA energy think 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).”
In a paper 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 study comes amid moves in the international energy community for some form of combined approach by the three big producers — Saudi Arabia, the US and Russia — to stabilize markets.
In recent 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 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.
On the other hand, Stock markets in energy-rich Gulf states slumped to multi-year lows in the first quarter of this year over coronavirus shutdowns and crashing oil prices.
The five major bourses in the region, which pumps a fifth of the world’s crude supplies, plummeted in the first three months of the year, with Dubai’s market losing more than a third of its value.