Oil Ends at Lowest in Over a Year; U.S. Prices Drop Under $50 a barrel
Wednesday, 5 February 2020 04:00 WIB | COMMODITY |BrentWTIMinyak
Oil futures gave up earlier gains to finish with a loss on Tuesday, with U.S. prices below $50 a barrel for the first time in more than a year, as demand worries continue to plague the market.
Prices fell even as the Organization of the Petroleum Exporting Countries and its allies considered deeper production cuts to stem a coronavirus-inspired tumble in the commodity that entered a bear market a day ago.
The Wall Street Journal and others have reported that OPEC and its allies including Russia, known as OPEC+, were considering cutting crude output by a further 500,000 barrels a day.
However, among the scenarios under discussion at a technical meeting held in Vienna on Tuesday and Wednesday, one may be even larger production cuts of 800,000 barrels to 1 million barrels a day, the Journal reported Tuesday. Officials told the Journal that they are set to issue recommendations this week, with a final decision to come after a meeting of OPEC and its allies, likely sometime next week.
OPEC™s website still lists the next group gathering as March 5 for the special meeting of the OPEC Conference and March 6 for the OPEC+ meeting.
West Texas Intermediate crude for March delivery lost 50 cents, or 1%, to settle at $49.61 a barrel on the New York Mercantile Exchange, a day after it entered a bear market, down 20.8% from its recent high of $63.27 on Jan. 6, according to Dow Jones Market Data. A decline of at least 20% from a recent peak is the traditional definition of a bear market. Tuesday™s settlement was the lowest since Jan. 7, 2019.
April Brent crude fell 49 cents, or 0.9%, to $53.96 a barrel on ICE Futures Europe”its lowest settlement since Dec. 31, 2018. The international benchmark entered into a bear market on Monday, down 21% from its recent high of $69.02 from Sept. 16.
As of midnight Monday, China had 20,438 diagnosed coronavirus cases, with 425 deaths, according to China™s National Health Commission.
Source : Market Watch