UPDATE 12-Crude posts biggest weekly losses since 2008, hit by coronavirus and Saudi price war

* Oil prices post biggest week of losses since 2008
* Virus outbreak means fewer travel, slower business
* Saudi, UAE offer more crude in oversupplied market
* Interactive graphic on pandemic: https://tmsnrt.rs/2GVwIyw

(Updates headline, close of stock markets trading, changes
bullet points)
By Stephanie Kelly
NEW YORK, March 13 (Reuters) - Oil prices on Friday posted
their biggest week of losses since the 2008 global financial
crisis, rocked by the coronavirus outbreak and efforts by top
exporter Saudi Arabia and its allies to flood the market with
record levels of supply.
The rare combination of severe shocks to both supply and
demand has caused the crude market to collapse as producers
around the world steel themselves for an unexpected glut of oil
in coming weeks.
"It's a problem of an oil price war in the middle of a
constricting market when the walls are closing in," U.S. energy
historian Daniel Yergin said. The coronavirus sparked panic selling across markets for the
bulk of the week. The virus has infected at least 138,000 people
worldwide and killed more than 5,000, disrupting business,
markets and daily life. MKTS/GLOB
Major oil producers were pumping more crude into the market
as demand collapses. Saudi Arabia has chartered more than 30
crude supertankers to export oil in coming weeks, specifically
targeting big refiners of Russian oil in Europe and Asia, in an
escalation of its fight with Moscow for market share.
Goldman Sachs said it now expected a record oil surplus of
six million barrels per day (bpd) by April, in a global market
that usually consumes about 100 million bpd. On Friday, prices were higher, rebounding after the United
States and other nations signalled plans to support weakening
economies. But Brent crude LCOc1 dropped 25% on the week, the
biggest weekly fall since the 2008 global financial crisis. On
Friday, Brent rose 63 cents to settle at $33.85 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell
about 23% on the week, their biggest percentage decline since
2008. WTI rose 23 cents to settle at $31.73 a barrel, after
earlier gaining to $33.87 a gallon.
Hopes for a U.S. stimulus package that could ease an
economic shock from the coronavirus provided some support to the
oil and stock markets on Friday.
"There's hope that all the stimulus will stabilize the
economy and offset some of the concerns about weaker demand and
keep parts of the economy strong enough to support oil prices,"
said Phil Flynn, analyst at Price Futures Group in Chicago.
Saudi Arabia, the world's largest exporter, and the United
Arab Emirates offered more oil to customers after OPEC's talks
with Russia and others on supply restraint collapsed last week.
Russia, the world's second-largest producer, has shown no
interest in agreeing to further output curbs with the
Organization of the Petroleum Exporting Countries.
Russian oil producers met Energy Minister Alexander Novak on
Thursday but did not discuss a return to the deal. The head of
Gazprom Neft said it planned to hike production in April,
following the talks. Reuters survey showed analysts slashed their forecasts of
Brent crude prices to $42 a barrel on average in 2020, compared
with the $60.63 consensus in a February poll. But the price slump may reduce some supply, by forcing out
more costly producers.
Energy companies in the United States, which has surged to
become the world's biggest crude producer because of a boom in
pricier shale oil, are preparing to cut investment and drilling
plans due to plunging prices. The U.S. oil drilling rig count rose for a second week in a
row despite a massive drop in both oil and natural gas prices
this week and expectations from many analysts that the number of
rigs will fall as producers deepen spending cuts.
Companies added one oil rig in the week to March 13,
bringing the total count to 683, their highest since December,
energy services firm Baker Hughes Co BRK.N said on Friday.
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GRAPHIC: Wuhan coronavirus graphics interactive https://tmsnrt.rs/2GVwIyw
GRAPHIC: Analysts cut oil price forecasts for 2020 png https://tmsnrt.rs/2WagsCs
GRAPHIC: North American oil producers slash spending png https://tmsnrt.rs/2QbxqN1
OPEC+ deal collapse, virus double whammy to keep oil in $30s
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