Oil Decreased By Virus Concerns
Oil Decreased By Virus Concerns Oil prices, Goldman Sachs Group Inc.it fell after growing demand concerns over the potential for the spread of coronavirus emerging in China outweighed supply disruptions in OPEC countries such as Libya, Iran, and Iraq.
While the effects of key indicators have been limited so far, according to Goldman, if the virus follows a course like SARS in 2003, demand could take a hit and prices could fall by $ 2.90 per barrel. The abundance in stocks is also offsetting the effects of supply disruptions, with the International Energy Agency (IEA) recording that the world is “washed away by oil” and stockpiles in the US are expected to rise.
Oil has been experiencing drastic swings since the start of the year, with the market affected by turmoil in the Middle East, while hopes for demand to sign the first phase of a trade deal with Washington and Beijing are growing. The coronavirus emerging in China is having a mixed effect on market expectations more broadly, with Asian stocks rising, while U.S. Treasury bonds sliding horizontally. Gold fell slightly, while the yen depreciated.
Oversea-Chinese Banking Corp. In Singapore “the SARS that emerged in 2003 were really bad,” said economist Howie Lee, “and airports were empty, the occupancy rate in hotels fell rapidly and had an impact on the economy. Now there is abundance and the market is largely driven by demand,” he said.
March Futures Brent oil fell 28 cents, or 0.4 percent, to $ 64.31 per barrel at 12:23 a.m. Singapore time on the London-based ICE Futures Europe market. The contract fell 0.9 percent on Tuesday.
West Texas Oil (WTI) fell 31 cents on the NYMEX market to $ 58.07 per barrel.