Oil slides 2% as glut forecast, China virus overshadow Libya disruption - Reuters

Oil slides 2% as glut forecast, China virus overshadow Libya disruption - Reuters:

Oil prices fell more than 2% on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries amid the outbreak of a virus in China outweighed concern over disruptions to Libya’s crude output.

Brent crude LCOc1 ended the session down $1.38, or 2.1%, at $63.21 while West Texas Intermediate CLc1 fell $1.64, or 2.8%, to settle at $56.74.

The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.

“Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March,” said Edward Moya, senior market analyst at OANDA in New York.