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00:00Oil has tumbled to the lowest level since December. That is, unrest in China hurt investors appetite for risk and clouded the outlook for energy. Demand for Wallace, who leads our Middle East energy and commodities coverage, joins us now from Dubai. Paul, thank you so much for joining us. So what could stop this drop in oil prices? Because we certainly see that in front of us down by two point seven per cent on Brent at 81, 39. There's a lot of bearish news out there and certainly surrounding China right now. Yes, there is a lot of bearish news and it's been a pretty torrid time for oil bulls in the past two weeks. In the very short term, it doesn't seem as if there's much that can can stop this China. China is obviously the primary concern. Even before the spread of protests that we saw over the weekend, there was a lot of of pensioners around house. And how quickly China would be able to to reopen. And a lot of oil traders were thinking that we wouldn't see that until sort of the second or the third quarter, which obviously has quite a quite a big negative impact on the economy and oil demand. And beyond that, we've also got the price cap in Russia, the price cap on Russia, which will go not agreed yet. Looks like it's not going to have that much impact on Russian flows, on Russian exports. So all that means we've got weak demand and. Okay, supply for the next few weeks. The big thing you could say is the OPEC plus meeting on Sunday. That's probably the one thing that could go somewhere at least to reversing this price rout. So pull over. Plus, decision next begins. The one thing that could turn this around. How likely is a supply cut from OPEC's plus? And what's the current expectation in the market? I think with what we've seen from in terms of comments from the Saudis and the RTX Secretary-General in the last few weeks and with this oil price fall as well, I think it's the consensus is very much that OPEC is either going to stay steady or cut. And I imagine that traders are upping their bets for a cut today. Given what oil is doing, the Saudis don't want oil at these prices. I'd like them slightly higher, as would most other members of the cartel. And the problem for effect plus is that if the market is already pricing in a cut, it's going to have to do that just to keep things stable or unless they want to go really big and go for an unexpectedly high production decrease. But we're just going to have to find out on Sunday. But as it stands now, it's likely that either gonna stay steady or lower output.

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Oil Plunges to Lowest Since 2021

Oil tumbled to the lowest level since December as a wave of unrest in China punished risk assets and clouded the outlook for energy demand, adding to stresses in an already-fragile global crude market. Paul Wallace reports on Bloomberg Television. (Source: Bloomberg)

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