Read the article ofOPEC Sees Coronavirus Weighing Heavily on Oil Demand.pdfin the context of Module 6.

• Discuss the supply side of the market for oil. What are the determinants of supply of oil? Justify your answer by quoting relevant sentences from the article.
• the following is the article:
• OPEC Sees Coronavirus Weighing Heavily on Oil Demand China imports more oil than any other country but virus outbreak is slowing demand By David Hodari Feb. 12, 2020 7:35 am ET LONDONThe impact of the coronavirus will depress global oil demand growth this year, OPEC said Wednesday, as China, the world's largest importer of oil, confronts the fast-spreading pathogen. In its closely watched monthly oil market report, the Organization of the Petroleum Exporting Countries downgraded its world oil demand growth forecast for the sixth time in nine months, this time by 230,000 barrels to 0.99 million barrels a day, while also cutting its global economic growth forecast to 3% for the year. "The outbreak of the Coronavirus in China during [the first half of 2020] is the major factor behind this downward revision," OPEC said in reference to its demand growth cut. The cartel added that "the Coronavirus-related impact, in combination with a weakening economy in the Eurozone and India," was behind the reduction to its global growth forecast. The report follows a 17% plunge in oil prices so far this year with border closures, flight cancellations, and the quarantine of millions of people as the spreading coronavirus has shut down large parts of China. China imports more oil than any other country and several Wall Street banks have in recent weeks slashed their 2020 growth forecast for the world's second largest economy. OPEC highlighted Chinese demand for transportation fuels, particularly jet fuel and gasoline as being affected by the coronavirus, with the outbreak of the illness affecting travel over the Lunar New Year period and prompting travel restrictions in parts of the country. The release of OPEC's monthly report also came amid ongoing confusion about the cartel and its allies' attempts to stabilize oil prices. While member-states held an emergency joint technical meeting last week, 'plus group' leader Russia rejected a Saudi-led effort to deepen OPEC's production squeeze. OPEC said in a statement Saturday that the committee recommended extending ongoing cuts to the end of 2020, with additional cuts until the end of the second quarter this year. Despite attempts to bring forward the OPEC+ meeting scheduled for early March, discussions were inconclusive and Russia continues to deliberate over its preferred course of action. OPEC and its allies completed a new production pact in December, deepening oil-output cuts by an extra 500,000 barrels a day to last through the end of March, bringing the coalition's reduction to roughly 1.7 million barrels a day. In that context, January's figures were the first to reflect production since that agreement. While production in Saudi ArabiaOPEC's de facto leaderrose by 154,000 barrels a day, that was mitigated by falls of at least 50,000 barrels a day from each of Iraq, Kuwait, and the United Arab Emirates. Production rose by 38,000 barrels a day in Nigeria, which has repeatedly flouted its previously agreed upon reductions, and by 45,000 barrels a day in Angola, whose delegates stormed out OPEC's December meeting in Vienna. Still, while the OPEC report didn't give a total cartel production figure, it cited secondary sources reporting a 509,000 barrel a day drop in OPEC production in January. That secondary figure included a sharp 344,000 barrel a day drop in Libyan productionapproximately a 30% drop on its December production with the North African exporter suffering oil field closures amid factional fighting that has lasted for close to a decade. OPEC and its allies' deeper cuts were aimed at reducing the impact of slowing global growth and rising production outside OPEC. The organization reduced its non-OPEC supply-growth forecast by 100,000 barrels in its release, citing "large downward revisions to the U.S. liquid production forecast" as being partially 1 offset by increases in Norway, Canada, and Brazil. The price of Brent crude, the global benchmark, has fallen 16.5% so far in 2020 and U.S. crude futures have dropped 16.9%, with money managers reducing bets on rising prices "as geopolitical tensions receded and focus turned to concerns about the impact of the coronavirus on global economy and oil demand growth," OPEC said. On Wednesday, Brent was up 2.1% at $55.14 a barrel and West Texas Intermediate futures were up 1.6% at $50.75 a barrel on hopes the spread of the coronavirus was slowing. Write to David Hodari at D..i@dowjones.com 2