U.S. oil climbs, but ends off the day’s high as Fed rate cut raises worries about COVID-19’s economic fallout - MarketWatch

U.S. oil climbs, but ends off the day’s high as Fed rate cut raises worries about COVID-19’s economic fallout - MarketWatch:

U.S. benchmark oil futures finished modestly higher on Tuesday and off the day’s best levels, while global benchmark crude prices settled lower as a surprise, inter-meeting interest-rate cut by the Federal Reserve caused traders to worry more about the global economic fallout of the COVID-19 epidemic.

Prices had traded sharply higher earlier in the session, buoyed by expectations for a further cut to oil production by the Organization of the Petroleum Exporting Countries and its allies.

The Fed’s move is “a sign that the economic fall out may be worse than expected,” said Phil Flynn, senior market analyst at The Price Futures Group.

“There seems to be a lot of uncertainty, but we know that ultimately the rate cut will stabilize the market,” he told MarketWatch. “Don’t be surprised if we get a snap back later.”

April West Texas Intermediate crude CLJ20, +1.11%  rose 43 cents or 0.9%, to settle at $47.18 a barrel on the New York Mercantile Exchange. The global benchmark, May Brent crude BRNK20, +0.12%, however, moved lower to settle down 4 cents, or 0.08%, at $51.86 a barrel on ICE Futures Europe. It traded as high as $53.90 during the session.