Oil declines as novel coronavirus anxiety lurks
SINGAPORE- Oil prices sunk down on Tuesday as novel coronavirus concerns weighed on the economy directly dragging oil demand in China, the world’s second-largest crude importer. In line with this, financial markets continue to record series of losses.
Brent crude LCOc1 shed 37 cents, equivalent to 0.6%, to $57.30 per barrel by 0126 GMT. U.S. West Texas Intermediate Clc1 declined 15 cents, last standing at $51.90 per barrel.
“While it’s more comfortable to call oil higher, given the likely pent-up demand to lead to a recovery from second quarter, it’s far too early to suggest oil market concerns have dissipated,” said Stephen Innes of AxiCorp.
US stocks futures also underperformed on Tuesday after reaching positive records. The inactivity followed after Apple Inc (AAPL.O), leading US-based company, disclosed that it might not reach its revenue guidance next month as the novel coronavirus still affects manufacturing sector and demand in China.
Contagion of the virus eased on Tuesday with health officials disclosing a 2,000 drop in number of infected. However, global analysts said that records are tad and it’s too early for a conclusion whether the virus is fully contained.