Oil Claws Back Some Virus Losses After U.S. Stockpiles Report - Bloomberg:
Oil extended its recovery from a virus-induced slump as a report showing a drop in U.S. crude inventories, a rebound on Wall Street and speculation OPEC+ will step in to prop up prices reassured investors.
The American Petroleum Institute reported stockpiles fell by 4.27 million barrels last week, which would be the biggest drop this year if confirmed by government data due later on Wednesday. That took some attention away from the novel coronavirus, which kept spreading as confirmed cases in China overtook the official number of infections during the SARS epidemic.
Oil has rebounded 1.5% after closing at a three-month low on Monday amid concern over the potential impact of the outbreak on travel and economic activity in China, the world’s biggest energy consumer. The Organization of Petroleum Exporting Countries and its allies could deepen output cuts at its next meeting in March to take account of lower demand due to the virus, according to Ed Morse, head of commodities research at Citigroup Inc.
Oil extended its recovery from a virus-induced slump as a report showing a drop in U.S. crude inventories, a rebound on Wall Street and speculation OPEC+ will step in to prop up prices reassured investors.
The American Petroleum Institute reported stockpiles fell by 4.27 million barrels last week, which would be the biggest drop this year if confirmed by government data due later on Wednesday. That took some attention away from the novel coronavirus, which kept spreading as confirmed cases in China overtook the official number of infections during the SARS epidemic.
Oil has rebounded 1.5% after closing at a three-month low on Monday amid concern over the potential impact of the outbreak on travel and economic activity in China, the world’s biggest energy consumer. The Organization of Petroleum Exporting Countries and its allies could deepen output cuts at its next meeting in March to take account of lower demand due to the virus, according to Ed Morse, head of commodities research at Citigroup Inc.
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