IEA's Birol: Playing Russian roulette in oil markets may well have grave consequences

Commenting on the latest developments surrounding the oil market, "playing Russian roulette in oil markets may well have grave consequences," noted International Energy Agency's (IEA) chief Birol on Monday.

"Oil prices below $25 per barrel would lead to a stop in new US shale developments," Birol added. "We would like to see oil companies' commitments to energy transition maintained despite tough market conditions.

Regarding the impact of the coronavirus outbreak on the energy demand, Birol said that there was potential for an oil overhang of 3.5 million barrels per day in the first quarter.

WTI selloff continues

As of writing, the barrel of West Texas Intermediate was down 22.1% on the day at $32.20.