Oil drops below $57 on coronavirus impact and OPEC+ delay - Reuters

Oil drops below $57 on coronavirus impact and OPEC+ delay - Reuters:

Oil fell below $57 a barrel on Tuesday, pressured by concerns over the impact on oil demand from the coronavirus outbreak in China and a lack of further action by OPEC and its allies to support the market.

Forecasters including the International Energy Agency (IEA) have cut 2020 oil demand estimates because of the virus. Though new cases in mainland China have dipped, global experts say it is too early to judge if the outbreak is being contained. 


Brent crude LCOc1 was down $1.02 at $56.65 a barrel by 1100 GMT after rallying in the previous five sessions. U.S. West Texas Intermediate crude CLc1 fell 82 cents to $51.23.

“Risk aversion has returned to the markets,” said Commerzbank analyst Carsten Fritsch.