Crude Oil Price News and Forecast: WTI Crude oil price stabilizes as OPEC+ weighs supply cuts

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

WTI up on OPEC+ rumours, looks to China

The massive sell-off in prices of the West Texas Intermediate appears to have met an important contention near the $52.60 region per barrel so far on Tuesday. So far, the barrel of WTI shed more than 20% since 2020 tops near the $66.00 mark recorded earlier in the month to Monday’s low near the $52.00 mark.

Prices of the commodity reversed the downside somewhat on Tuesday in response to sources indicating the probability that the OPEC+ could extend the ongoing oil output cut agreement until June or even increase the reductions, always on the back of rising fears on the impact of the Wuhan virus on the global economy. Read more...
 

Crude oil price stabilizes as OPEC+ weighs supply cuts

European stocks and American futures rose as the market appeared to ignore the spreading of Coronavirus disease. The disease has killed at least 106 people and infected more than 4,500 according to Chinese health officials. In Europe, Stoxx 50, DAX, and CAC 40 rose by 15, 40, and 25 points respectively. In the United States, futures tied to the Dow and S&P500 rose by 134 and 20 points respectively. This is partly because of corporate earnings. Apple will be the company to watch today. Lockheed Martin reported a 10% increase in revenue while Xerox reported better-than-expected results. However, 3M and Harley-Davidson reported disappointing earnings.

The price of crude oil remained at a four-month low as OPEC members started talking about supply cuts. The members are deliberating about the best way to handle the current rout in oil prices. The price has dropped by more than 15% since its January peak. The decline is partly because of the ongoing Coronavirus crisis. The theory is that the disease will have an impact on the global economy. S&P Global has already hinted that the disease will dampen China’s growth by more than 1.2% this year. OPEC+ leaders are considering cutting oil production more or extending the current cuts to the end of the year. Read more...
 

Oil sell-off slows as Libya threatens to halt production,futures hint at positive open in Europe

Slowing China story continues taking a toll on the global stock markets, this time not because of the trade war but the spreading coronavirus which has taken more than 100 lives thus far as confirmed cases rose by 65% to 4515 in mainland China.

Chinese markets remained closed for the Chinese New Year break, but stocks elsewhere in Asia were mostly down for another day. Nikkei (-0.79%), ASX 200 (-1.35%) and Kospi (-3.22%) led losses, while stocks in Thailand (+0.51%) recovered a part of heavy losses recorded yesterday.

The fall in oil prices loses momentum on news that production in Libya could completely stop as a result of a conflict with the OPEC members. WTI crude steadies near the $53 a barrel – after having lost 20% since the January pick of $65 a barrel following the signature of the phase one deal between the US and China. Supply-side disruption could help keeping WTI above the $50 level, but the upside will likely remain limited by fears of slowing Chinese, and global demand. Read more...