OPEC and its allies, collectively OPEC+, have started talks about potentially deepening oil production cuts if the coronavirus outbreak continues to stifle oil prices, the Financial Times reported. Brent crude dipped below $60 per barrel to $58 per barrel, a three month low.
"They are prepared to do anything if there is a need," said an anonymous OPEC source. "They are watching the market closely."
OPEC+ is already considering extending its cuts, potentially until the end of 2020, but could look at "cutting deeper," the source said.
Saudi Energy Minister urged calm, likening the "extreme pessimism" in the market today to the 2003 SARS epidemic.
“The current impact on global markets, including oil and other commodities, is primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand,” he said in a statement.