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Energy Minister Prince Abdulaziz bin Salman downplayed the possible impact of the spread of the coronavirus on crude oil prices, while urging caution against gloomy expectations.
He asserted that the impact being seen on oil and other markets was “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand”, Reuters reported.
"Such extreme pessimism occurred back in 2003 during the SARS outbreak though it did not cause a significant reduction in oil demand," he added.
For the last few days oil prices have retreated sharply following the outbreak in China despite several measures being taken to contain the spread of the virus.
The minister further noted that OPEC and its allies could respond to any impact on the oil market.
He added that that the Chinese and international authorities could contain the spread of the virus.
All options were open when OPEC+ meets in Vienna in March, he said.
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