Wednesday, 5 February 2020

Oil Climbs From One-Year Low With OPEC+ Split on Output Curbs - Bloomberg

Oil Climbs From One-Year Low With OPEC+ Split on Output Curbs - Bloomberg:

Oil rebounded back beyond $50 a barrel as OPEC+ entered a second day of discussions on the impact of the coronavirus outbreak.

Futures rose 2.5% in New York, reversing some of the dramatic collapse across the futures curve this week that saw the market fall into a bearish contango structure -- indicating oversupply. The recovery reflects speculation that OPEC+ talks in Vienna may result in an emergency ministerial meeting on fresh output cuts, while Sky reported that a virus vaccine could be close to animal testing.


Views differ on the potential impact of the deadly virus on demand, with BP Plc suggesting it could wipe out a third of global consumption growth this year, while OPEC’s own analysis indicates a modest drop of around 400,000 barrels a day for about six months.

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