Extraordinary G20 Energy Ministers Meeting Dr Sun Xiansheng , - - PowerPoint PPT Presentation

Extraordinary G20 Energy Ministers Meeting

10 April | 2020

Dr Sun Xiansheng, Secretary General IEF

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Brent and WTI vs CBOE US Oil Volatility Index USO VIX

Brent (LHS) WTI (LHS) USO VIX (RHS)

GFC

US$ USO VIX

COVID-19 oil market volatility dwarfs that of the Global Financial Crisis (GFC)

COVID-19

The IEF platform stands ready to help producer and consumer countries to:

• Respond to excessive energy market volatility and distortions
• Assert all efforts to stabilise energy markets
• Boost market confidence in support of secure and sustainable growth

Ready to address the challenge

Demand fall out surpasses thresholds

COVID-19 disrupts energy balances beyond thresholds and storage limits

• Oil consumption falls to unprecedented lows and will take time to recover
• Global inventories set to rise to capacity in the short-term
• Even in a swift recovery markets will need time to clear the overhang
• Will investment deferrals lead to an upswing in the post-pandemic era?

To overcome unparalleled risk to energy security and orderly transitions:

• Improve market transparency, especially on inventories and strategic

stock in Non-OECD region through JODI and Trilateral Work Programme

• Broaden dialogue at IEF17 Business and IEF17 International Energy

Forum scheduled on 25-26 September prior to G20 Ministers Meeting

• Strengthen energy market governance through public-private and inter-

institutional dialogue and collaboration on IEF and G20 platforms

Energy dialogue and transparency