Friday 24 January 2020

Oil rises, but potential impact of China virus on fuel demand haunts market - Reuters

Oil rises, but potential impact of China virus on fuel demand haunts market - Reuters:

Oil prices climbed on Friday, following a drawdown in U.S. crude stocks, but were set to fall heavily for the week amid worries that a new coronavirus in China that has killed 25 so far may spread, curbing travel, fuel demand and economic prospects.

Brent crude futures LCOc1 were up 31 cents, or 0.5%, at $62.35 a barrel by 0741 GMT after falling 1.9% the previous session. For the week, Brent is down about 4%.

U.S. West Texas Intermediate futures CLc1 were up 27 cents, or 0.5% higher at $55.86 a barrel. The contract fell 2% on Thursday and is 4.6% lower for the week. 


“Oil’s sell-off (for the week) continued at pace as fears continued about the effects on global demand from a virus-induced economic slowdown in Asia,” said Jeffrey Halley, senior market analyst, OANDA. “We would expect the fragility in oil prices to continue.”

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