Oil prices suffer further as China virus contagion worsens

27.01.2020 - Davydova Maria
Oil prices suffer further as China virus contagion worsens

Oil prices sunk down with 2% loss as it recorded consecutive months of lows on Monday. Such inactivity was brought heavily by the growing number of novel coronavirus cases and city lockdown that may drastically affect demand for crude.

Brent crude LCOc1 declined by $1.12 per barrel, or equivalent to 1.9% to $59.57 by 0013 GMT. Brent crude’s underperformance followed after an initial drop of $58.68, the lowest since October. US crude CLc1 inched down by $1.14, or equivalent $53.05 with its previous inactivity of $52.15, the lowest since earlier part of October.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al-Saud said on Monday that he was observing progresses and developments in China with confidence that the spread of the newly discovered strain of virus would soon be arrrested.

Financial markets are being “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand,” he said.

As the novel coronavirus spreads further, financial markets are on the receiving end of its negative impact. However, most Asian markets are closed in celebration of the Chinese Lunar New Year.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?