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Early Monday morning in Asia, Saudi Arabia’s Energy Minister crossed the wires while reiterating the ability of the Organization of the Petroleum Exporting Countries (OPEC) and other ally countries, mostly known as OPEC+, to support oil markets if needed.

Key quotes

Closely monitoring developments in the global oil market resulting from ‘gloomy expectations’ about the impact of new coronavirus.

The current impact on the oil market is currently driven by ‘psychological factors’ and expectations despite the currently limited impact on global demand.

The kingdom and other OPEC producers have the capability and flexibility if needed to respond.

FX implications

While energy traders are waiting for the oil markets to open for Monday, global risk-off keeps the Japanese yen and the US dollar (USD) well in demand. News like this might try to placate the oil bears at the open. The last week’s close to WTI was near $54.20.