World Economic Forum and G20 Secretariat host meeting on the Fourth Industrial Revolution

Photo: Reuters

Saudi Arabia will host the two-day World Economic Forum (WEF) partnership with the Kingdom’s G20 Secretariat in Riyadh today.

The meeting is likely to be overshadowed by the effects of the global COVID-19 pandemic on the price of oil—a special OPEC meeting is scheduled for the sidelines of the WEF. Crude prices have dramatically declined as air travel and commerce have ground to a halt in recent months.

Compounding the demand hit, Russia and Saudi Arabia have engaged in a price war that saw oil prices drop to around $23.00 per barrel this week. However, speculation is rising that Moscow and Riyadh will agree on oil production cuts to stabilise the price of oil soon, though any reduction in supply is unlikely to offset the fall in demand.

There is no guarantee that an agreement is imminent and both countries continue to blame each other for the oil price plummet. Even if an agreement is reached, prices will likely be depressed for the next year as most G20 countries look set to impose pandemic restrictions for extended periods. In particular, strict border restrictions will keep airlines grounded or force them out of business altogether, hampering demand for oil.

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