Oil slumps as stock markets sink, while #Saudi, #UAE plan to boost capacity - Reuters

Oil slumps as stock markets sink, while Saudi, UAE plan to boost capacity - Reuters:

Oil prices fell 4% on Wednesday, sinking into the close of trading with renewed weakness in the stock market after the World Health Organization said the global coronavirus outbreak is now a pandemic, and as major oil producers announced plans to escalate the burgeoning price war.

Brent crude settled down $1.43, or 3.8%, at $35.79 per barrel, while U.S. West Texas Intermediate (WTI) crude ended down $1.38 or 4% to $32.98.

Risk assets tumbled throughout the day, but accelerated losses late as the number of coronavirus cases increased and numerous countries restricted travel.

“What caused the dump in oil prices in the last minutes before the oil market close was when the stock market made new lows,” said Phil Flynn, analyst at Price Futures Group in Chicago. “News on the coronavirus does not seem to be inspiring demand hopes right now.”