WTI slumps to fresh two-week lows near mid-$50s ahead of API data

Crude oil prices stayed relatively resilient during the first half of the day on Tuesday but turned south in the American session with the barrel of W  |  25/02/2020 17:36
  • Coronavirus fears continue to weigh on risk-sensitive commodities. 
  • Saudi Arabia says they should not be complacent about coronavirus.
  • IEA looks to lower forecast for global oil demand growth.

Crude oil prices stayed relatively resilient during the first half of the day on Tuesday but turned south in the American session with the barrel of West Texas Intermediate (WTI) dropping to its lowest level in two weeks at $50.35. As of writing, the WTI was trading at $50.50, erasing 1.6% on a daily basis.

Demand concerns outweigh supply cut expectations

The rising number of coronavirus infections, especially outside of China, continues to weigh on risk-sensitive commodities as OPEC+ struggles to reach an agreement on their response to the outbreak. 

Earlier in the day, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman noted that they haven't yet reached a decision on oil output cuts but added that they should not be complacent about the impact of the coronavirus outbreak on the global energy demand. On the other hand, Amin Nasser, the CEO of Saudi Aramco, argued that the impact on the company due to falling demand on coronavirus would be minimal.

In the meantime, International Energy Agency's (IEA) Chief Fatih Birol said they may need to lower their global oil demand growth estimate, which is already at its lowest level in the last ten years.

Later in the day, the API's weekly Crude Oil Stock data will be looked upon for fresh impetus.

Technical levels to consider

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com