UPDATE 9-Oil slides as demand worries overshadow OPEC deal to deepen supply cuts

* OPEC backs extra 1.5 mln bpd output cut
* Deal has yet to win Russian backing
* IMF says coronavirus erases expectations for stronger
growth
* U.S. crude stocks rise modestly; exports exceed 4 mln bpd

(Updates prices to settlement, latest on OPEC)
By Devika Krishna Kumar
NEW YORK, March 5 (Reuters) - Oil prices fell on Thursday as
the coronavirus epidemic showed no signs of slowing, feeding
worries about the global economy and prompting investors to sell
more risky assets like stocks and crude oil and park money in
safe havens.
Oil's losses came even as OPEC agreed to cut crude output by
an extra 1.5 million barrels per day (bpd) in the second
quarter, its deepest cut since the 2008 financial crisis.
The group made its action conditional on Russia and others
joining. Analysts and traders said global oil markets were
likely to be oversupplied in the second quarter as demand
plummets. Brent crude LCOc1 fell by $1.14, or 2.2%, to settle at
$49.99 a barrel while U.S. West Texas Intermediate (WTI) CLc1
ended the session down 88 cents, or 1.9%, at $45.90.
OPEC will propose the new 1.5 million bpd cut be extended
until the year end, sources said.
Russia has so far indicated that it would back an extension
rather than deeper production cuts.
"Russia has so far dragged its feet in committing to more
cuts," Capital Economics analysts said in a note.
"OPEC+ negotiations tomorrow are likely to be more
contentious than today's meeting. That said, the risk of a
pandemic has escalated in the last week, and this may persuade
Russia to agree to additional cuts."
Russia, which has co-operated on output policy since 2016 in
the informal group known as OPEC+, has in the past been hesitant
during talks and then signed up at the last minute. Moscow will
take part in the OPEC+ ministerial meeting in Vienna on Friday.
Russia is fiscally prepared to cope with a drop in oil
prices, Finance Minister Anton Siluanov said, but did not
predict Russia's decision on deeper output cuts. "In our current projection, world oil demand is expected to
fall 2.7 million barrels per day in the first quarter. This is a
massive drop, and it shows the scale of the problem OPEC+
faces," said Ann-Louise Hittle, vice president at energy
consultancy Wood Mackenzie.
"Whether Russia will agree to the cuts is the million-dollar
question. Given their history of co-operation with OPEC, we
expect they will agree."
The coronavirus outbreak has slammed oil demand. Forecasts
for growth in crude demand in 2020 have been slashed, as factory
operations, travel and other economic activities around the
world have been curtailed.
Oslo-based Rystad Energy now predicts global oil demand will
grow by 500,000 bpd in 2020, down from a February forecast of
820,000 bpd.
The head of the International Monetary Fund said the global
spread of the virus has crushed hopes for stronger economic
gains this year.
China's top gas importer, PetroChina 601857.SS , has
declared force majeure on natural gas imports because of the
outbreak. Prices found some support early in the session after a
lower-than-expected rise in crude oil inventories in the United
States, alleviating some concern about oversupply in the world's
biggest oil consumer. EIA/S

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-OPEC production versus world demand https://tmsnrt.rs/396Q404
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>