Oil prices have soared, but more are expected until China stops the virus



Buy Cheap MTN, Glo, 9Mobile, Airtel Data/Airtime VTU Services

SIZE VALID YOU PAY BUY
1GB 30DAYS ₦295 BUY
2GB 30DAYS ₦595 BUY
3GB 30DAYS ₦895 BUY
5GB 30DAYS ₦1495 BUY
BUY CHEAP VTU SERVICE

Oil prices have soared, but more are expected until China stops the virus



Oil prices rose today in international markets to $ 59 after the World Health Organization (WHO) announced that there was no reason to restrict travel due to the coronavirus epidemic in China.

In the London market, the price of barrels rose 20 cents from the previous close and was $ 58.49. The US barrel traded 24 cents higher at $ 52.38.



The World Health Organization (WHO) declared a coronavirus epidemic in China globally on Thursday night, but has calmed markets with the message that there is no need to limit travel. Measures taken so far by Chinese authorities will stop the spread of the virus, according to the WHO.

A coronavirus epidemic could reduce China's demand for oil

“The move has prompted optimism that light may be coming at the end of the 'viral' tunnel. Specifically, the (virus) slowdown should pave the way for a coordinated international response to control the spread of disease worldwide,” explains PVM's Stephen Brennock.

He added, however, that oil prices could decline in the coming days as long as China “reverses the trend of spreading the virus.”

Analysts and traders estimate that the coronavirus epidemic could reduce China's oil demand by more than 250,000 barrels a day in the first quarter of this year and stall oil prices, already squeezed by heavy supply.

Saudi Arabia is seeking an earlier OPEC meeting

Saudi Arabia, meanwhile, has launched a discussion to move the regular meeting of the Organization of the Petroleum Exporting Countries (OPEC) from March to early February to assess the impact of coronavirus on oil demand.

“We believe that uncertainty about the duration of the epidemic and the impact of the virus on the economy is still significant,” points out Harry Tchilinguirian of the London branch of the French bank BNP Paribas.

“So we are not sure what the results of the emergency OPEC meeting in February could be, except for the usual reassuring messages to the market that manufacturers will take steps to ensure market balance,” Tchilinguirian added.

Brexit should not have a significant impact on markets

New Year's holidays in China were supposed to end today and companies start operating again, but authorities have ordered companies in a number of areas to extend them to curb the epidemic.

Analysts also added that today's formal exit of the United Kingdom from the European Union should not significantly affect markets.

Separately, OPEC reported on its website today that the price of a barrel of its member oil reference basket was $ 58.80 on Thursday, meaning it was $ 2.24 lower than the previous trading day.

Oil prices have soared, but more are expected until China stops the virus

Share this On


Buy Cheap MTN, Glo, 9Mobile, Airtel Data/Airtime VTU Services

SIZE VALID YOU PAY BUY
1GB 30DAYS ₦295 BUY
2GB 30DAYS ₦595 BUY
3GB 30DAYS ₦895 BUY
5GB 30DAYS ₦1495 BUY
BUY CHEAP VTU SERVICE

Leave a Comment