Crude oil slips 2 per cent on supply glut forecast, China coronavirus outbreak


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Crude oil slips 2 per cent on supply glut forecast, China coronavirus outbreak

On Wednesday, the 22nd of January 2020, both UK and US crude futures’ slid price more than 2 per cent following a supply glut forecast by the IEA (International Energy Agency), while an outbreak of coronavirus in China which had even reached in to the US shores had stoked demand worries across the globe.

In point of fact, although crude oil price futures’ were cushioned earlier this week by a en masse supply disruption in Libya which had curbed out nearly half of the nation’s entire crude oil output or 0.65 per cent of entire crude oil production, however, a recent outbreak of coronavirus in China which even could lead to a number of respiratory tract infections including severe pneumonia, bronchitis alongside Coronavirus-related SARS (Severe Acute Respiratory Syndrome) had revived fears of a global scale lag in demands.

Meanwhile, adding that the investors were bracing for a “flight to safety” response over the narratives of heavy oversupply concerns, a senior market analyst at OANDA in NY, Edward Moya said on Wednesday’s (January 22nd) market round off, “Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdul-Aziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March.

” Citing statistics, on Wednesday’s (January 22nd) market wind down, the UK crude futures’ prices shrugged off 2.1 per cent to $63.21 per barrel, while the US West Texas intermediate crude took a heavy header of 2.8 per cent to round off the day at $56.74 per barrel.