Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Oil slides 1% on renewed fears over toll from coronavirus

share with twitter share with LinkedIn share with facebook
share via e-mail
02/21/2020 | 03:17pm EDT
FILE PHOTO: Drilling rigs operate at sunset in Midland

Oil prices fell about 1% on Friday on renewed concerns about crude demand being pinched by the economic impact of the coronavirus outbreak, while OPEC and allied producers appeared to be in no rush to curb output.

The latest signs of infections outside the Hubei province epicenter in China spurred a selloff across financial markets, as G20 policymakers traveled to Saudi Arabia for talks on the global economy.

Brent crude tumbled as more than 2% at one point before settling down 81 cents, or 1.4%, at $58.50 a barrel. U.S. crude futures settled 50 cents lower, or 0.9%, at $53.38.

Both benchmarks were on track for their second consecutive weekly rise, with Brent up 2% and U.S. crude rising 2.6%, as fears over the virus' impact on demand eased earlier in the week and after a smaller-than-expected U.S. crude stock build. [EIA/S]

"It's safe to say that uncertainty (surrounding coronavirus) has returned with a vengeance," said Ole Hansen, head of commodity strategy, Saxo Bank.

"We have to acknowledge that we're dealing with the biggest demand shock since the financial crisis... Until we see China getting back to work, the virus will be the main focus."

In the latest sign of the economic hit, U.S. business activity in the manufacturing and services sectors stalled in February.

Concerns over the virus have largely overshadowed risks to supply, including the latest blockade in Libya, said Edward Moya, senior market analyst at OANDA in New York.

The United Nations said ceasefire talks were back on track between forces fighting over Libya's capital. Meanwhile, Yemen's Houthis said they had struck facilities of Saudi oil giant Aramco in the Red Sea port of Yanbu.

OANDA's Moya also pointed to signs the Organization of the Petroleum Exporting Countries (OPEC) was unlikely to cut supplies further.

Russian Energy Minister Alexander Novak said on Thursday that producers understood it would no longer make sense to meet before a planned gathering in March.

"Concerns the Saudis and Russians are struggling to agree on the appropriate response to the demand destruction the coronavirus has created," were pressuring prices, Moya said.

"Markets are starting to doubt we'll see the full 600,000 bpd in additional (OPEC+) cuts."

In the United States, the oil rig count, an indicator of future production, rose for a third straight week. Drillers added one oil rig this week, bringing the total count to 679, the highest since the week of Dec. 20, energy services firm Baker Hughes Co said. [RIG/U]

By Swati Verma

Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL -4.66% 25.8 Delayed Quote.-62.08%
SAUDI ARABIAN OIL COMPANY 0.67% 30.15 End-of-day quote.0.84%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
12:49pWorkers Return to China's Factories, but Coronavirus Hurts Global Demand -- 2nd Update
12:45pMexican Economy Seen Shrinking in 2020 -- Central Bank Survey
12:33pEU exec proposes shorter work hours to prevent layoffs amid epidemic
11:59aWhiting files for Chapter 11 bankruptcy as oil prices hover at $20
11:38aU.S. manufacturing contracts; private payrolls post first drop since 2017
11:16aNEWS HIGHLIGHTS : Top Financial Services News of the Day
11:16aNEWS HIGHLIGHTS : Top Company News of the Day
11:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
11:15aKroger posts 30% jump in March comparable sales, borrows $1 billion
Latest news "Economy & Forex"