According to Angel Broking, Last week, WTI Crude prices plunged 13 percent after markets assessed that the lethal virus breakout could lead to a far greater economic damage than initially thought which might dent the demand for fuel.
Angel Broking's report on Crude Oil
Last week, WTI Crude prices plunged 13 percent after markets assessed that the lethal virus breakout could lead to a far greater economic damage than initially thought which might dent the demand for fuel. Moreover, increase in number of cases outside China raised worries of a possible economic slowdown. Even Libya’s Oil output dipped sharply since mid-Jan’20 reflecting the blockade of ports and oil fields by groups loyal to eastern-based commander Khalifa Haftar. The OPEC+ stated that they would further trim their output to counter the slumping demand due to the coronavirus outbreak in the major Crude consumer, China. OPEC+ plans to meet in Vienna on 5th -6 th March 2020.
Outlook
Rising worries over the Coronavirus breakout might further dent the demand worries for Crude and push the prices lower. However, expectation of aggressive output cuts by OPEC amid stimulus measures by various central banks might support Crude. On the MCX, oil prices are expected to trade lower today.
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