Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Oil prices fall for fifth day to lowest in a year

Commodities Feb 27, 2020 08:23AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
LCO
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-4.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Noah Browning

LONDON (Reuters) - Oil prices fell nearly 3% on Thursday, plunging for a fifth day to their lowest since January 2019 as a rise in new coronavirus cases outside China fuelled fears of a pandemic that could slow the global economy and dent demand for crude.

Brent crude (LCOc1) was down $1.55, or 2.9%, at $51.88 a barrel at 1315 GMT. West Texas Intermediate (WTI) futures (CLc1) fell by $1.41 cents, or 2.9%, to $47.32 a barrel.

For the first time since the start of the coronavirus outbreak erupted in China, the number of new coronavirus infections outside the country exceeded new Chinese cases.

The spread of the virus to large economies including South Korea, Japan and Italy has raised concerns that growth in fuel demand will be limited. Consultants Facts Global Energy forecast oil demand would grow by 60,000 barrels per day in 2020, a level it called "practically zero", due to the outbreak.

U.S. President Donald Trump sought to assure Americans on Wednesday evening that the risk from coronavirus remained "very low", but global equities resumed their plunge, wiping out more than $3 trillion in value this week alone.

"The negative price impact would intensify if the coronavirus were declared pandemic by the World Health Organization, something that looks imminent," said PVM Oil Associates analyst Tamas Varga.

"The mood is gloomy and the end of the tunnel is not in sight – there is no light ahead just darkness. Not even a refreshingly positive weekly U.S. oil report was able to lend price support."

Gasoline stockpiles dropped by 2.7 million barrels in the week to Feb. 21 to 256.4 million, the Energy Information Administration (EIA) said on Wednesday, amid a decline in refinery throughput. Distillate inventories fell by 2.1 million barrels to 138.5 million.

U.S. crude oil stockpiles increased by 452,000 barrels to 443.3 million barrels, the EIA said, which was less than the 2-million-barrel rise analysts had expected. [EIA/S]

The crude market is watching for possible deeper output cuts by the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+.

"Oil is in freefall as the magnitude of global quarantine efforts will provide severe demand destruction for the next couple of quarters," said Edward Moya, senior market analyst at OANDA. "Expectations are growing for OPEC+ to deliver deeper production cuts next week."

OPEC+ plans to meet in Vienna on March 5-6.

Oil prices fall for fifth day to lowest in a year
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Gem Deal
Gem Deal Feb 27, 2020 11:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
crude tomorrow how to the position
Keith Vosburgh
Keith Vosburgh Feb 27, 2020 8:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stable Genius Trump says US Is in great shape to deal with a pandemic like Covid19, and in April nothing will support virus spread due to temperature rise. Does this sound like a campaign stump speech to anyone else?  If the market tanks, his anchor line is snapped.....and the boat drifts away.
Keith Vosburgh
Keith Vosburgh Feb 27, 2020 8:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Feeling super relaxed after Trump gave his stable genius assessment of the US being in great shape to weather a pandemic like Covid19. In April when the temperature rises, all will be fine.  Sound like a campaign Stump Speech to anyone else?
Abhishek Mall
Abhishek Mall Feb 27, 2020 6:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yesterday only you write Due to short covering price rise.!!! Jokers
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email