Crude cruises 2.5% as coronavirus slows pace, US pledge to cut more Venezuelan crude

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Crude cruises 2.5% as coronavirus slows pace, US pledge to cut more Venezuelan crude

On Wednesday, the 19th of February 2020, both Brent and US crude gained as much as 2.5 per cent after a decline in new coronavirus cases in China had offset demand concerns, while a stiffening of US sanction on Venezuela’s heavy to medium grade crude to choke up the nation’s élan vital, had resulted in further supply cuts and shored up investors’ optimism.

In point of face, an ease of demand concerns related to coronavirus outbreak following release of China official data showing a decline of newer infection for the second consecutive day, had buoyed up investors’ hope, while a US move to impose sanction on one of the subsidiaries of Russian oil industry giant Rosneft over allegation that it had been aiding Venezuela to process payments for the Latin American nation’s crude oil, had curtailed oil supply and proffered a lifeline to the crude oil futures’ prices hovering near multi-year lows.

Meanwhile, citing that the market was heavily betting on a quicker-than-anticipated resolution of the coronavirus-related crises, an analyst at Price Futures Group in Chicago, Phil Flynn said on Wednesday’s (February 19th) market wind down, “There’s more optimism that maybe this disease is peaking.

The market is pricing in the possibility that we can get back to normal quicker, and that’s going to be very bullish for oil demand. ” Citing statistics, on Wednesday’s (February 19th) market wrap-up, UK crude futures’ prices ended up the day 2.6 per cent higher to $59.22 per barrel, while the US West Texas Intermediate crude futures’ prices surged by 2.4 per cent to $53.28 per barrel.