Oil slides by 4% after Russia rejects steeper OPEC+ cut

WIDER ECONOMY

Global stock markets tumbled on Friday as disruptions to business from the spreading coronavirus epidemic worsened. European shares opened sharply lower, with travel stocks bearing the brunt.

However, after marking its worst weekly performance since the 2008 financial crisis a week ago, the MSCI All-Country World Index was up 1.7% on the week.

Even with the deeper cut, Goldman Sachs said the OPEC+ deal would not have prevented a global oil market surplus in the second quarter. The bank maintained its Brent price forecast at US$ 45 a barrel in April.

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"Ultimately, a rebound in demand, not supply cuts, will be the necessary catalyst for a sustainable rebound in prices," the bank said.

Saudi Arabia's state oil company told buyers that is has delayed publishing its crude oil official selling prices (OSP) for April until after the OPEC+ meeting.

Meanwhile, ANZ said that global oil consumption could fall by 1.6 million bpd in the first half of 2020 and contract by about 300,000 bpd for the full year.

"Growth may return in H2 (second half of 2020) but is unlikely to be enough to offset the losses," the bank said.