2020-03-11 12:30:00
OIL PRICE: NEAR $37 ANEW
REUTERS - MARCH 11, 2020 - Oil prices fell on Wednesday, giving up earlier gains, after Saudi Aramco said it had been directed by the energy ministry to raise its production capacity by a million barrels per day.
Brent crude slid $0.41, or 1.1%, to $36.81 a barrel by 0740 GMT, while U.S. West Texas Intermediate (WTI) crude dropped $0.42, or 1.2%, to $33.94 a barrel.
Saudi Aramco Chief Executive Amin Nasser said the state-run oil giant had been asked by the Ministry of Energy to boost its production capacity to 13 million barrels per day (bpd) from 12 million bpd now.
Saudi has been pumping around 9.7 million bpd in the past few months, but has extra capacity it can turn on and has hundreds of millions of barrels of crude in storage.
Oil prices had climbed earlier in the day, recouping nearly half of Monday's 25% losses, on hopes spending cuts by North American producers to cope with multi-year low crude prices would lead to a drop in output.
U.S. crude oil inventories rose in the most recent week, while gasoline and distillate stocks dropped, data from industry group the American Petroleum Institute showed.
Meanwhile, worries about the economic fallout from the coronavirus outbreak and its impact on energy demand continued to pressure oil prices.
Policymakers and central banks have been taking measures to bolster their economies against disruption caused by the virus outbreak, the latest being the Bank of England that unexpectedly cut interest rates by half a percent on Wednesday.
"Coronavirus is still spreading globally and no doubts that the virus spread in major economies like the United States will continue to hurt oil demand," said Victor Shum, vice president of Energy Consulting at IHS Markit.
"I think we are looking at $30 levels (in Brent) and I would not be surprised in some day to see prices lower than $30."
The flu-like coronavirus, which can be transmitted from person to person, originated in China late last year and has spread to more than 60 countries since then. It has infected over 100,000 people and killed more than 4,000 globally.
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Earlier:
2020, March, 10, 13:50:00
OIL PRICE: NEAR $37
Brent were up $1.44, or around 4%, to $35.80 a barrel, after hitting a session high of $37.38 a barrel. WTI gained $1.52, or around 5%, to $32.65 a barrel, after hitting a high of $33.73.
2020, March, 9, 15:00:00
OIL PRICE: ABOVE $35
Brent were down 22% at $37.05 a barrel, WTI fell by more than 24%, to $33.20 a barrel,
2020, March, 6, 12:45:00
OIL PRICE: NEAR $49
Brent crude fell 49 cents, or 0.98%, to $49.50 per barrel, WTI was down 46 cents, or 1%, at $45.44 per barrel.
2020, March, 4, 10:05:00
OIL PRICE: NOT ABOVE $53
Brent rose by 78 cents, or 1.50%, to $52.64 a barrel, WTI rose by 72 cents, or 1.53%, to $47.90 a barrel,
2020, March, 2, 13:05:00
OIL PRICE: NEAR $51 ANEW
Brent was at $51.91 a barrel, up $2.24 or 4.5%, WTI hit a 14-month low of $43.32, before recovering to $46.65, up $1.89, or 4.2%.
2020, March, 2, 13:00:00
BRENT PRICE LEVEL: $ 42.4
"I want to emphasize, for the Russian budget, for our economy, current oil prices are acceptable. Let me remind you that this year, as part of our macroeconomic policy, we took a Brent crude price of $42.40/b as the base level," Putin said during a meeting on the impact of the coronavirus on the global economy and the oil market with government ministers and representative of oil and gas companies.
2020, March, 2, 12:55:00
OPEC+ OIL CUTS
Despite heavy lobbying by Saudi Arabia, the 23-country coalition of OPEC and non-OPEC producers has yet to agree on any plans to rein in crude oil production further.
