That’s because inventories are rising amid lower oil demand due to the coronavirus outbreak, Kang Wu, Asia’s head of analytics, told CNBC’s “Capital Connection” on Thursday.
Oil prices have been under pressure because of the virus that shuttered Chinese businesses for weeks and forced flight cancellations around the world.
As the economic impact of the coronavirus unfolded, the Organization of the Petroleum Exporting Countries slashed its global oil demand outlook. For China, where the outbreak began, OPEC revised its demand forecast down by 0.2 million barrels a day for the first half of the year.
Even if OPEC cuts production by 600,000 barrels a day, oil prices could remain weak until April, according to a senior analyst at S&P Global Platts.
That’s because inventories are rising amid lower oil demand due to the coronavirus outbreak, Kang Wu, Asia’s head of analytics, told CNBC’s “Capital Connection” on Thursday.
Oil prices have been under pressure because of the virus that shuttered Chinese businesses for weeks and forced flight cancellations around the world.
As the economic impact of the coronavirus unfolded, the Organization of the Petroleum Exporting Countries slashed its global oil demand outlook. For China, where the outbreak began, OPEC revised its demand forecast down by 0.2 million barrels a day for the first half of the year.
International benchmark Brent crude futures were at $52.81 a barrel, down 1.16% on Thursday afternoon in Asia, while U.S. crude futures fell 1.33% to $48.08 a barrel.
International benchmark Brent crude futures were at $52.81 a barrel, down 1.16% on Thursday afternoon in Asia, while U.S. crude futures fell 1.33% to $48.08 a barrel.
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