G20 nations to hold virtual meet to discuss energy market stability amid low oil prices

Amid the ongoing coronavirus pandemic, on September 27, the energy ministers of all the G20 states will convene a two days virtual meeting. The meeting will focus on topics like the energy market stability amid low oil and gas prices and lacklustre demand. The meeting will be directed by Saudi Energy Minister Prince Abdulaziz Bin Salman Al Saud since Saudi Arabia holds the presidency in G20 this year.

Read: G20 Trade And Investment Working Group Meeting Goes Virtual Amid COVID-19

The G20 nations meet 

G20 states including, Russia, the European Union, and the United States will be attending the meeting. Various issues like the promotion of sustainable energy systems using the Circular Carbon Economy Platform and the advancing of access to energy will be discussed. On the second day of the meeting, Saudi Minister Prince Al Saud will be addressing a press conference. Many countries that are not a part of G20 along with several international organisations will also be participating in the two days virtual meeting. 

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In a separate development, the third meeting of the G20 Trade and Investment Working Group was conducted on September 20. The meeting was held virtually in the presence of the G20 Trade and Investment Ministers presided by the Saudi G20 Presidency to discuss the trade policies investment policy cooperation for the sustainable economic growth of the nations worldwide. On September 19, the Saudi government announced in an official press release that the event will be held remotely due to the COVID-19. It added that the leaders would also draft policies towards reforms of the World Trade Organization to strengthen international investment and boost the operations by enhancing the competitiveness between the world’s Micro, Small, and Medium-Sized Enterprises (MSMEs).

Oil prices have fallen into negative territory as the global coronavirus pandemic keeps people at home, destroying the demand for fuel. The price of US benchmark crude to be delivered in May fell below zero, hitting a historic low. Jim Burkhard, an oil industry analyst with IHS Markit said, "So we've had oil demand collapse. People are driving less. No one's flying anywhere. So we have a lot of extra oil supply that's simply not being used". He added, "If it's not being used, it has to go into storage. But there is a limit to how much oil the world can store and we're bumping up against the limits of storage capacity. And so today we saw the price of oil go negative".

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(Image Credit: Twitter/@G20Australia/ Representative Image)