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Oil steadies, but concern over spreading China virus weighs

Published 01/24/2020, 10:29 AM
Updated 01/24/2020, 10:32 AM
© Reuters. Oil steadies, but concern over spreading China virus weighs
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By Roslan Khasawneh
SINGAPORE, Jan 24 (Reuters) - Oil prices were steady on
Friday, but on track for a fall of up to 5% for the week on
growing concern that fuel demand will weaken as the spread of a
respiratory virus from China that has killed 25 so far dents
travel and darkens the economic outlook.
Brent crude futures LCOc1 were 4 cents lower to $62 a
barrel by 0225 GMT, its lowest since Dec. 4, after falling 1.9%
the previous session. For the week, Brent is down 4%.
U.S. West Texas Intermediate futures CLc1 were down by 1
cent to $55.58 a barrel, its lowest since Nov. 29. The contract
fell 2% on Thursday and is 5% lower for the week.
The new coronavirus has infected more than 800 so far in
China, with 25 dead as of Thursday, according to China's
National Health Commission. The World Health Organisation has
declared the situation an emergency, but stopped short of
declaring the epidemic of international concern. Most of the cases are in the central Chinese city of Wuhan,
where the virus is believed to have originated late last year,
though cases have now been found in at least seven other
countries.
In a note on a Friday, ANZ Bank warned that further spread
could crimp energy demand from the transportation sector.
On the supply side, U.S. crude oil and distillate
inventories fell last week while gasoline stockpiles grew for an
11th consecutive week to an all-time high, the Energy
Information Administration said on Thursday. EIA/S
Crude inventories fell 405,000 barrels in the week to Jan.
17, government data showed, less than analysts' expectations in
a Reuters poll for a 1 million barrel drop.

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