• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 7 hours Permian in for Prosperous and Bright Future
  • 11 hours Daniel Yergin Book is a Reality Check on Energy
  • 7 hours YPF to redeploy rigs in Vaca Muerta on export potential
  • 6 hours Gepthermal fracking: how to confuse a greenie
  • 18 hours US after 4 more years of Trump?
  • 2 hours Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 11 hours Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 6 mins Famine, Economic Collapse of China on the Horizon?
  • 22 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 3 days US Oil Refinery Fexibility
  • 2 days Surviving without coal is a challenge!!
  • 2 days Portuguese government confirms world record solar price of $0.01316/kWh
  • 3 days China Must Prepare for War Says State Media
BP Bombshell: India’s Oil Demand May Peak In 2025

BP Bombshell: India’s Oil Demand May Peak In 2025

India’s oil consumption may peak…

Oil Rises After EIA Confirms Crude Inventory Draw

Oil Rises After EIA Confirms Crude Inventory Draw

Oil prices continued to rally…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Extend Losses As Market Fears Pandemic

Oil prices tumbled for a fourth consecutive day early on Wednesday, as the coronavirus continues to claim lives in Italy and spreads to the Middle East, while U.S. health officials warned that the outbreak is likely to become a pandemic.

At 8:47 a.m. EST on Wednesday, WTI Crude had slumped to below US$50 a barrel, trading down 1.34 percent at US$49.23. The U.S. oil benchmark hit its lowest level in more than a year—since January 2019. Brent Crude was trading below the US$55 mark: the price was down 1.57 percent at US$53.42.  

Oil and equity markets took another hit on Wednesday as fears of a global pandemic battering economies and oil demand further intensified. Italy, the worst-hit country outside Asia, had reported 11 deaths from the coronavirus as of early Wednesday, with more than 300 people infected, including children.

Other European countries also started reporting cases of coronavirus infections of people who had visited Italy. Switzerland, Austria, and Croatia, all three bordering Italy to the north and northeast, reported their first coronavirus cases.

The virus spread to the Middle East, too. As of Wednesday, Kuwait had reported 25 cases of coronavirus infections, after confirming 13 new infections today, and all new cases were of people infected after visiting Iran, Gulf News reported.

U.S. health officials said on Tuesday that the coronavirus outbreak is leading to a global pandemic. Related: Oil Tanks On Fears Of Global Economic Crisis

“Current global circumstances suggest it’s likely this virus will cause a pandemic,” Anne Schuchat, principal deputy director of the CDC, said at a news conference on Tuesday, but noted that the immediate risk to the U.S. remains low.

The heightened fear of a global pandemic is heavily hitting equity and oil markets and all risk assets this week, while the head of the International Energy Agency (IEA) said on Tuesday that the agency could additionally trim its oil demand growth projections due to the coronavirus outbreak.

The slump in oil prices comes a week before OPEC and its Russia-led allies are set to discuss how to handle the situation with the depressed demand.

“We continue to hold the view that OPEC+ will need to extend current cuts, along with current Saudi over-compliance through until at least the end of June,” ING strategists Warren Patterson and Wenyu Yao said on Wednesday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News