Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

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 | 02:40pm EDT
A oil pump is seen at sunset outside Scheibenhard

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.
LONDON BRENT OIL 0.31% 32.66 Delayed Quote.-47.14%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -0.29% 75.5208 Delayed Quote.24.40%
WTI 1.59% 25.01 Delayed Quote.-59.76%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
01:16aPULP FRICTION : Border jams delay supply of toilet paper's only ingredient
RE
01:16aNEWS HIGHLIGHTS : Top Company News of the Day
DJ
01:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
01:13aJapan's service sector sentiment plummets in March - government
RE
01:13aWILLAMETTE VALLEY VINEYARDS : Patio Pairing with 2017 Père Ami
PU
01:08aBANK OF JAPAN : Twelfth Meeting of the "Council for Cooperation on Financial Stability" 
PU
01:04aWobbly U.S. fiscal response could deepen coronavirus recession
RE
12:28aAI AUSTRALIAN INDUSTRY : Moving Office Work to Home – is it healthy and safe?
PU
12:19aThai rate was held steady on March 25 to preserve policy room - central bank minutes
RE
12:16aIran doesn't agree with holding OPEC+ meet without clear outcome - oil min
RE
Latest news "Economy & Forex"