Oil gives up gains even as OPEC works on big output cut - Reuters

Oil gives up gains even as OPEC works on big output cut - Reuters:

Crude oil prices were mixed, giving up early gains despite expectations that major producers were closing in on an agreement to cut supply aimed at offsetting a slump in demand caused by the coronavirus outbreak.

Since the outbreak worsened, oil has dropped sharply, and rebounds have been short-lived. Brent crude futures LCOc1 were down 26 cents at $51.60 a barrel at 11:43 a.m. ET (1643 GMT), after hitting $53.03. U.S. West Texas Intermediate (WTI) CLc1 was up 2 cents to $47.22 a barrel.

U.S. oil inventories grew less than anticipated, the U.S. Energy Department said, and gasoline and diesel stocks fell more than expected. While the report seemed supportive, selling continued.

“The market is going to be weighed down by the coronavirus impact on demand destruction,” said Andrew Lipow, president of Lipow Oil Associates. “I do not see oil demand recovering to pre-virus levels for several months, as additional outbreaks in Europe and the U.S. are going to cause travel and meeting disruptions and demand destruction.”