Crude oil drools 1% as demand concerns offset hopes of bigger OPEC+ cut

by   |  VIEW 335
Crude oil drools 1% as demand concerns offset hopes of bigger OPEC+ cut

On Tuesday, the 4th of February 2020, despite a resounding opening of the day over optimisms that the OPEC+, a pact of 14-member petroleum exporting nations alongside their Russia-backed allies, would curb crude oil production further by 500,000 barrels per day apart from an ongoing output cut of 2.1 million barrels per day over an emergency meeting scheduled to be taken place on Wednesday (February 5th), crude oil prices futures’ prices had botched to maintain the momentum and dipped as much as 1 per cent on Tuesday’s (February 4th) market wrap up.

In point of fact, the shoddy sell-off that took place on late-evening trading hours was almost entirely catalysed by concerns that an output curb of as much as 2.6 million barrels of crude oil per day might fall short to bear the brunt of a demand fret doodling over the horizon.

Meanwhile, addressing to a menacing impact on global demands stoking cerulean snowfalls on crude oil futures’ market, a Vice President of market research at Tradition Energy in Stamford, Connecticut, Gene McGillian said on Tuesday’s (February 4th) market wind down, “I think the fear of demand destruction continues to really have the market by its throat”.

Citing statistics, on Tuesday’s (February 4th) market closing bell, UK crude ended up the day down by just a notch shy of 1 per cent to $53.96 per barrel and the US Texas Intermediate crude futures’ prices shed 1 per cent to $49.61 a barrel, while both benchmarks had hit their lowest levels since early-January 2019.