Oil advances but nCoV economic impact restricts gains
TOKYO- Oil prices recorded a well-ended session on Wednesday. However, it remained neutral as gains were restricted by the growing damage of the coronavirus contagion which originated from China. In line with this, a decrease in new cases was recorded in Hubei, the center of the outbreak.
Brent crude LCOc1 added 6 cents and last stood at $57.81 per barrel by 0149 GMT. US West Texas Intermediate clocked in 7 cents to $51.97 per barrel. Both contracts began trading in lower grounds at Asian trading board.
China is having trouble putting the manufacturing sector back on track in the world’s second-largest economy after the implementation of city-wide lockdowns and travel bans. Measures imposed are meant to negate further spread of the novel coronavirus.
However, while official records have it that virus cases decreased, the mortality rate continues to grow. The World Health Organization (WHO) warned that the statistics are inadequate to know the magnitude of the virus crisis and whether it was being contained.
Oil prices climbed up to 8% after suffering on low grounds this year. However, another sharp reversal is expected and such may urge Organization of the Petroleum Exporting Countries (OPEC) to implement deeper output reduction.