Crude oil prices fall as coronavirus death toll climbs, U.S. inventories grow

Crude oil prices fall as coronavirus death toll climbs, U.S. inventories grow”

USA oil inventories fell last week, data from industry group the American Petroleum Institute showed on Tuesday, compared with analysts' expectations of a gain of 482,000 barrels.

Fears of the virus impact on oil demand are increasing as major airlines cancelled or reduced direct flights to China and travel advisories issued by different governments led to drop in the number of passengers.

In the Reference case, US crude oil production reaches 14.0 million barrels per day by 2022 and remains near this level through 2045 as tight oil development moves into less productive areas and well productivity declines. Brent is still down 2.5 per cent for the week.

Traders have also taken some reassurance from comments by Saudi Arabia and other OPEC members that they're prepared to act to shore up the market.

Still, the prevailing mood about the crude market for the immediate future was pessimistic: Stephen Brennock, oil analyst at PVM Oil Associates, stated, "Will deeper OPEC supply curbs provide the panacea for the current oil market malaise?" It has dropped around 14 per cent so far in January. Distillate stockpiles fell by 1.3 million barrels, versus consensus expectations for a draw of about 1.1 million barrels.

Oil was mixed on Wednesday as worries about the impact of the coronavirus outbreak and swelling crude inventories in the United States weighed on prices, while talk that OPEC could extend oil output cuts provided support. Futures for the precious metal were up 0.414 percent to $1,576.90 per barrel. Any fallout of the China virus on oil demand is likely to be clearer over the coming week, the source said.

The Senior Commodity Strategist at Goldman Sachs, Damien Courvalin, said the global oil demand could potentially fall by 260,000bpd, hitting the aviation sector the hardest. In a conservative scenario, the potential movement could boost the price until $55.87 per barrel.

"There isn't a compelling case crude needs to go lower until we know more about how bad the demand destruction from the coronavirus epidemic is going to be", said Stratfor oil analyst, Greg Priddy.

Still, ING cautioned that outages in Libya - where production has been steadily declining amid a blockade - should not be discounted.

Like this



31 January 2020
With Overdose Deaths Down, Life Expectancy Sees Slight Upturn
A decline in the death rate from cancer is the single largest driver of the small increase in life expectancy, the CDC reported . Addressing that despair , he says, will be key to preventing more people from turning to drugs in the first place.

31 January 2020
Someone tried to hack my phone. Technology researchers accused Saudi Arabia
Then I asked the editor of the real Arab News, an English newspaper in Saudi Arabia, if you use . An investigation by Citizen Lab found the message to have been a targeted hacking attempt.

31 January 2020
Boy charged with attempted murder for stabbing younger sister: 'Really disturbing scene'
He added that the idea came to him two days before and he "tried to get it out of his head but could not". He allegedly told investigators he stabbed his sister because "he wanted to be able to go outside".

31 January 2020
Hailey Bieber Is Tired Of People ‘Roasting’ Her Pinky Fingers
Hailey Baldwin-Bieber it seems is not a person to turn the other cheek when people talk unkindly about her and her husband online. Hailey Bieber has urged people to stop roasting her for having a genetic disorder that causes her fingers to appear crooked.

31 January 2020
Israel Folau returns to rugby after signing on with French club
Super League say "strict guidelines are in place" should Folau repeat comments. But the sport's "toothless" governing bodies still came for criticism.

31 January 2020
Coronavirus outbreak is 'public health emergency of global concern,' WHO declares
They will remain at a USA military base in California at least through the end of the week. The WHO said there had been 98 cases in 18 counties outside of China, but no deaths.

31 January 2020
NBA’s Radical New All-Star Game Format Includes Kobe Bryant Tribute
It'll matter to Chicago-area charities, which will benefit from however many quarters Team LeBron and Team Giannis win that night. The game score will then be reset for the second quarter (though each team's running total score will come into play later on).

31 January 2020
‘Extremely obese’ owl back in the wild after two-week diet
Sanctuary staff also encouraged her to exercise in the rehab center by feeding her low to the ground. An adorable rescued owl was labelled "too fat to fly", according to a Suffolk sanctuary.

31 January 2020
Woman who has accused Trump of sexual assault is seeking his DNA
The request came in a letter to the president's attorney, who did not immediately respond to a request for comment from ABC News. Trump has consistently denied these allegations, which previous year trigged a defamation suit from Carroll.

31 January 2020
Lil Nas X responds to Atlanta rapper's homophobic rant on him
Y'all better get to fighting". "You never know which box it'll fall in, I guess, so I wouldn't label it". A subtle clue was contained in the rainbow coloured building on the front of his debut EP 7.