TOKYO- Oil prices soared for second day on Wednesday, and were more stable after hitting five-day low on reports that OPEC could further reduce oil output if China virus impacts demand. Figures disclosing decline in US stockpiles supported oil activity.
Brent crude LCOc1 advanced 33 cents, equivalent to 0.6% to $59.84 per barrel by 0103 GMT. US crude increased 31 cents equivalent to 0.6% at $53.79 per barrel.
Financial markets that were subjected to virus outbreak and a bloating mortality statistics are reviewing the possibility of further economic slowdown, supported by remarks from the head of World Health organization of China’s drive to eradicate the virus.
“Oil’s bloodbath appears to be over for now,” said Edward Moya, senior market analyst at OANDA.
“China’s coronavirus fears have somewhat eased and a 4.3 million barrel drop with the American Petroleum Institute data provided a boost for energy prices,” he added.
Organization of Petroleum Exporting Countries plans on reducing oil production further until the middle of 2020, with reduction far deeper than the previous cuts should demand from China decreases due to the coronavirus outbreak, OPEC sources disclosed.
US oil inventories sunk last week according to figures released by the American Petroleum Institute last Tuesday, compared with analysts’ outlook of 482,000 barrels.