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 edges up as output cut hopes offset coronavirus concern

share with twitter share with LinkedIn share with facebook
share via e-mail
02/17/2020 | 01:26pm EDT
FILE PHOTO: Drilling rigs operate at sunset in Midland

Oil prices inched up on Monday as concerns over the economic fallout from the coronavirus outbreak in China were offset by expectations that potential production cuts from major producers could tighten global crude supply.

Brent crude was at $57.59 a barrel, up 27 cents, by 12:55 p.m. EST (17:55 GMT) after rising 5.2% last week, its biggest weekly gain since September 2019.

U.S. West Texas Intermediate crude was up 23 cents to $52.28 a barrel, after a 3.4% gain last week.

Trading volumes were thin due to the U.S. Presidents Day holiday.

"Nothing goes down forever, as they say, and oil appears to have finally shaken off its bearish malaise," said Stephen Brennock of oil broker PVM.

"Virus anxieties were put on the back burner. Investors cheered a salvo of stimulus measures from China's central bank ... sentiment was given a supportive jolt by expectations of a supply response from the OPEC+ producer alliance."

The International Energy Agency (IEA) said last week the virus was set to cause oil demand to fall by 435,000 barrels per day (bpd) year-on-year in the first quarter, in what would be the first quarterly drop since the financial crisis in 2009.

Oil rose last week for the first time since early January on optimism that Chinese economic stimulus measures could lead to a recovery in oil demand in the world's largest importing country.

There are some indications of prompt demand for oil as the front-month Brent futures market has shifted to a backwardation, when near-term prices are higher than later-dated prices, from a contango.

Investors are also anticipating that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will approve a proposal to deepen production cuts to tighten global supplies and support prices.

The group, known as OPEC+, has an agreement to cut oil output by 1.7 million bpd until the end of March.

A technical committee earlier this month recommended the group reduce production by another 600,000 bpd because of the impact of the coronavirus, though oil prices' first weekly gain since early January on Friday may give the producers pause.

"The more recent strength that we have seen in the market may also make OPEC+ complacent when it comes to taking action," ING said in a note.

"Already the group has failed to bring forward the meeting that was originally scheduled for early March. And if the market consolidates around current levels, OPEC+ may see little need to rush a decision."

By Laila Kearney and Noah Browning

Stocks mentioned in the article
ChangeLast1st jan.
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -0.90% 76.54 Delayed Quote.24.53%
WTI 16.65% 28.79 Delayed Quote.-66.58%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
11:11aIITA INTERNATIONAL INSTITUTE OF TROPICAL AGRICUL : Meet CGIAR-IITA's women fighting plant pests and diseases
11:01aOPEC+ meeting delayed as Saudi Arabia and Russia row over oil price collapse - sources
10:31aAMY KLOBUCHAR : Klobuchar, Hoeven, Smith, and Colleagues Urge Administration to Ensure Continuity of Food Supply by Supporting Farmers During Coronavirus Pandemic
10:27aSpain to ease economic restrictions, won't give up on 'coronabonds' - PM
10:26aCENTRAL BANK OF BARBADOS : The Central Bank Continues Operations During the Extended Curfew
10:16aEU approves coronavirus state support for Portugal, Poland, Greece
10:06aEurogroup chief calls for adequate discussion on 'coronabonds' - paper
09:37aBritish retailer Cath Kidston set to appoint administrators - Sky
09:06aPRESIDENCY OF REPUBLIC OF SOUTH AFRICA : Communique of the AU Bureau of Heads of State and Government teleconference meeting, 3 April 2020
09:03aNMC Health's new executive chair vows to recover misused funds
Latest news "Economy & Forex"