Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Oil prices slip as coronavirus concerns linger

Published 18/02/2020, 02:43
© Reuters.  Oil prices slip as coronavirus concerns linger
AAPL
-
LCO
-
CL
-

* Stocks fall as Apple says to miss Q1 revenue guidance

* Global oil demand could slip 435,000 bpd in Q1 - IEA

* Chinese independent refiners buy cargoes after absence

By Jessica Jaganathan

SINGAPORE, Feb 18 (Reuters) - Oil prices slipped on Tuesday

on lingering concerns over the economic impact of the

coronavirus outbreak in China and its effect on oil demand,

tracking losses in financial markets.

Brent crude LCOc1 was at $57.30 a barrel, down 37 cents,

or 0.6%, by 0126 GMT, while U.S. West Texas Intermediate crude

CLc1 fell 15 cents, or 0.3%, to $51.90 a barrel.

"While it's more comfortable to call oil higher, given the

likely pent-up demand to lead to a recovery from second quarter,

it's far too early to suggest oil market concerns have

dissipated," said Stephen Innes, chief market strategist at

AxiCorp.

U.S. stock futures slipped from record levels on Tuesday

after Apple Inc AAPL.O , the most valuable company in the

United States, said it will not meet its revenue guidance for

the March quarter as the coronavirus outbreak slowed production

and weakened demand in China. The number of new coronavirus infections in mainland China

fell below 2,000 on Tuesday for the first time since January,

Chinese health officials said, although global experts warn it

is too early to say the outbreak is being contained.

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.

Still, with some Chinese independent refineries snapping up

crude supplies after being absent from the market for weeks,

traders held out hopes that China's demand could recover in

coming months.

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.

Oil output from Libya has fallen sharply since Jan. 18

because of a blockade of ports and oil fields by groups loyal to

eastern-based commander Khalifa Haftar.

Libya's national oil corporation, NOC, said on Monday that

oil production was at 135,745 barrels per day as of Monday,

compared with 1.2 million bpd before the stoppage.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.