Oil sinks ahead of data disclosing nCoV impact on demand

17.02.2020 - Kulakov Vladimir
Oil sinks ahead of data disclosing nCoV impact on demand

SINGAPORE- Oil prices underperformed as investors await for Asian economic records that will state the implications of the 2019 novel coronavirus contagion on oil demand in China, world’s second-largest oil importer.  The said data is set to be released this week.

Brent crude LCOc1 shed 33 cents, and last stood at $56.99 per barrel by 0121 GMT. The inactivity followed after the crude recorded a 5.2% increase last week, its largest weekly earnings so far since September 2019.

U.S. West Texas Intermediate crude CLc1 swiped out 13 cents, with a value of $51.92 per barrel. The frail performance occurred after hitting a 3.4% increase last week.

The weekly gains, oil’s initial rise since January, were brought heavily by optimism that stimulus measures implemented by China to nurse the economy from coronavirus impact could also aid the oil slump. However, International Energy Agency (IEA) stated that the coronavirus will drag oil demand to an estimated decline of 435,000 barrels per day.

The said slump will affect the first quarter of 2020 in what would be the first-ever loss since the 2009 financial crisis. In line with this, analysts said that it is still too early to assess the longer-term implications of the novel coronavirus to the economy.  

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue
×

Help with deposit?