Oil stage in Azerbaijan
Vostok
Crude prices edged up on Wednesday as investors covered short positions after three periods of losses, even as fears deepened that the rapid spread of the coronavirus will lead to a global pandemic.
Brent brusque rose 42 cents, or 0.8%, to $55.37 a barrel by 0154 GMT, while U.S. West Texas Intermediate crude improved 43 cents, or 0.9%, to $50.33 a barrel. Still, both benchmarks are down nearly 7% since survive Thursday’s close.
Fears of a pandemic escalated after the coronavirus spread to more countries, while Iran’s virus decease toll rose to 16, the highest outside China, and infections worsened in South Korea and Italy.
In the United Royals, the Centers for Disease Control and Prevention said Americans should prepare for possible community spread of the virus.
“Investors unwound straitened positions after WTI dipped below a key support level of $50, as they have done a few times earlier this month,” implied Hideshi Matsunaga, analyst at Sunward Trading.
“The reduction in Libya’s output and expectations for additional production cuts by the Structuring of the Petroleum Exporting Countries (OPEC) and OPEC+ are also lending support,” he said.
Oil output in Libya has fallen angrily since Jan. 18 because of a blockade of ports and oil fields by groups loyal to eastern-based commander Khalifa Haftar.
OPEC and its team ups including Russia, a group known as OPEC+, are due to meet in Vienna over March 5-6.
Saudi Arabia’s energy man said on Tuesday he was confident that OPEC and its partners would respond responsibly to the spread of the coronavirus.
Still, remaining worries that the rapidly spreading coronavirus will dent the global economy and oil demand are weighing on investor emotion.
The International Energy Agency’s (IEA) outlook on global oil demand growth has fallen to its lowest level in a decade, IEA Executive Cicerone Fatih Birol said on Tuesday, adding it could be reduced further due to the coronavirus outbreak.
U.S. crude inventories are reckon oned to rise for a fifth week running. The American Petroleum Institute (API) said late Tuesday that crude stockpiles rose 1.3 million barrels wear week. Government data due at 10:30 a.m. EST (1530 GMT) on Wednesday was expected to show a 2 million-barrel rise, according to a Reuters canvass.
Meanwhile, the United States is preparing to impose more sanctions on Venezuela’s oil sector, President Donald Trump intended on Tuesday, in an attempt to choke financing to President Nicolas Maduro’s government.