Concerns about renewed oil prices as Coronovirus increases in China’s case

SINGAPORE (Reuters) – Oil prices on Monday fell afresh about global fuel demand amid the tough coronavirus lockdown in Europe and new restrictions on movement in China, the world’s second-largest oil user, where the transition boomed .

FILE PHOTO: Crude oil storage tank Cushing, Oklahoma, seen on April 21, 2020, in an aerial photograph at the Cushing Oil Hub. REUTERS / Drone Base

Brent crude oil futures were down 65 centimeters, or 1.2%, at $ 55.34 a barrel at 0439 GMT. They climbed to the highest level as of February 25, 2020, after climbing to $ 56.39. Brent grew in the last four seasons.

US West Texas Intermediate (WTI) slipped 44 cents, or 0.8%, to $ 51.80 a barrel. The WTI reached its highest level in nearly a year on Friday.

Stephen Ines, Chief Global Markets Stephen Ines, said “Kovid’s hot spots are rising again with 11 million people (in) lockdown in China’s Hebei province. There has been some gains beyond the gates.” The strategist at Axi said in a note.

Mainland China saw its first daily increase in virus infections in more than five months, officials said on Monday, adding new infections grew in Hebei, which surrounds the capital Beijing.

Shijiazhuang, the provincial capital and epicenter of the new outbreak, is in lockdown, with people and vehicles barred from leaving, as authorities have sought to rein in the spread.

Much of Europe is now under the strictest restrictions, according to Oxford’s stringent index, which tracks measures such as travel restrictions and school and workplace closures.

Edward Crowne, a senior market analyst at OANDA, said “Crown Prince Mohammed bin Salman revealed Saudi Arabia’s future beyond oil and his price rise in Asia in February for crude oil sales in Iraq.”

Saudi’s prince on Sunday unveiled plans to build a zero-carbon city at NEOM, the first major construction project for a $ 500 billion flagship business zone aimed at diversifying the economy of the world’s largest oil exporting country.

Nevertheless, the loss of oil prices was curbed by US President-Elect Joe Biden’s plans to announce trillions of dollars in new virus relief bills this week that were to be funded through borrowing.

Crude prices were supported by Saudi Arabia’s pledge to cut 1 million barrels per day (bpd) in voluntary oil production in February and March.

Reporting by Jessica Jaganathan; Editing by Christian Schmollinger and Clarence Fernandez


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