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2020-02-26 10:35:00

OIL PRICE: NEAR $55

OIL PRICE: NEAR $55 ANEW

REUTERS - FEBRUARY 26, 2020 - Crude prices inched higher on Wednesday as investors covered short positions after three sessions of losses and eyed potential supply cuts, even as fears of a coronavirus pandemic deepened.

Brent crude rose 33 cents, or 0.6%, to $55.28 a barrel by 0513 GMT, while U.S. West Texas Intermediate crude gained 41 cents, or 0.8%, to $50.31 a barrel. Still, prices are down nearly 7% since last Thursday's close.

Fears of a pandemic escalated as authorities around the world battled to prevent the spread of coronavirus, which has now been found in about 30 countries.

Asian shares fell on Wednesday as a U.S. warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows. 

"Investors unwound short positions after WTI dipped below a key support level of $50, as they have done a few times earlier this month," said Hideshi Matsunaga, analyst at Sunward Trading.

"The reduction in Libya's output and expectations for additional production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ are also lending support," he said.

Oil output in Libya has fallen sharply since Jan. 18 because of a blockade of ports and oil fields by groups loyal to eastern-based commander Khalifa Haftar.

OPEC and its allies including Russia, a grouping known as OPEC+, are due to meet in Vienna over March 5-6.

"A weekly close below $55.00 a barrel on Brent crude will have the alarm bells ringing amongst the OPEC+ grouping," Jeffrey Halley, senior market analyst at OANDA said in a note.

"Some sort of price stabilization measures is inevitable should Brent crude prices continue falling," he added.

Saudi Arabia's energy minister said on Tuesday he was confident that OPEC and its partners would respond responsibly to the spread of the coronavirus.

The International Energy Agency's (IEA) outlook on global oil demand growth has fallen to its lowest level in a decade, IEA Executive Director Fatih Birol said on Tuesday, adding it could be reduced further due to the coronavirus outbreak.

U.S. crude inventories are expected to rise for a fifth week running. The American Petroleum Institute (API) said late Tuesday that crude stockpiles rose 1.3 million barrels last week. Government data due at 10:30 a.m. EST (1530 GMT) on Wednesday was expected to show a 2 million-barrel rise, according to a Reuters poll. 

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Earlier:

OIL PRICE: NEAR $55 ANEW
2020, February, 24, 10:50:00
OIL PRICE: NEAR $57
Brent fell by $1.42, or 2.4%, to $57.08 a barrel, WTI fell by $1.26, or 2.4%, to $52.12.
OIL PRICE: NEAR $55 ANEW
2020, February, 21, 12:30:00
OIL MARKET: NOTHING URGENT
Despite the partial recovery, oil prices are still far below the level many OPEC members need for their budgets to balance.
OIL PRICE: NEAR $55 ANEW
2020, February, 19, 11:55:00
GLOBAL OIL DEMAND 2020: 100.73 MBD
Oil demand growth in 2020 is revised down by 0.23 mb/d from the previous month’s assessment. With this, global oil demand is now forecast to grow by 0.99 mb/d and average 100.73 mb/d for 2020,
OIL PRICE: NEAR $55 ANEW
2020, February, 19, 11:50:00
GLOBAL PETROLEUM DEMAND WILL UP BY 1.0 MBD
EIA now expects global petroleum and liquid fuels demand will rise by 1.0 million b/d in 2020, which is lower than the forecast increase in the January STEO of 1.3 million b/d in 2020, and by 1.5 million b/d in 2021.
OIL PRICE: NEAR $55 ANEW
2020, February, 14, 12:10:00
CHINA'S CORONAVIRUS: NO AFFECT
The coronavirus epidemic in China has had a marginal impact on energy markets and is unlikely to dramatically affect oil prices even if Chinese demand falls by 500,000 barrels per day, U.S. Energy Secretary Dan Brouillette told
OIL PRICE: NEAR $55 ANEW
2020, February, 12, 12:12:00
OIL PRICES 2020-21: $61-68
EIA forecasts Brent prices will average $61/b in 2020; with prices averaging $58/b during the first half of the year and $64/b during the second half of the year. EIA forecasts the average Brent prices will rise to an average of $68/b in 2021.
OIL PRICE: NEAR $55 ANEW
2020, January, 24, 13:40:00
GLOBAL OIL DEMAND 2020: 100.98 MBD
For 2020, oil demand growth is revised up by 0.14 mb/d from the previous month’s assessment and is forecast at 1.22 mb/d, mainly reflecting an improved economic outlook for 2020. As a result, total world oil demand is projected to rise from 99.77 mb/d in 2019 to 100.98 mb/d in 2020.
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Tags: OIL, PRICE, BRENT, WTI