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Oil Prices Slide Near 3 Amid Accelerating Spread of Virus

Oil rates dropped more than 2 percent to reach a low last time seen many months ago on Monday, as the increased number of registered cases of coronavirus infection in China reinforced concerns over demand for this type of commodity.

oil rates declinePhoto: Flickr

Brent crude futures for March delivery eased by 2.24 percent, to $58,55 per barrel, while U.S. WTI crude oil futures dropped 2.36 percent, to reach $52,91 per barrel at 0834 GMT.

Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman Al-Saud expressed his opinion on Monday regarding the coronavirus spread, and namely that it could be contained. He also added, that the Saudi Kingdom and other OPEC members are ready to take measures in order to stabilize the oil market, if necessary.

The additional pressure on oil crude market put energy companies, which increased the number of active oil rigs by three on a week, which ended on January 24, extending the drill rig growth for the second week in a row.

The number of active oil rig amounted 676, whereas in contrast to the same period of the last year there were 862 units.

Source: Reuters