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Oil Recovers on U.S. Crude Inventories Decrease

Oil prices grew on Wednesday, extending gains for the second day in a row after a five-day decrease amid expectations that OPEC could extend production cuts if the outbreak of coronavirus affects demand amid the declined U.S. inventories.

oil futures recoverPhoto: Flickr

Front-month Brent futures gained 0.65 percent, to $59,19 per barrel, while WTI futures with delivery in March grew by 0.71 percent, to $53,87 per barrel at 1123 GMT. 

OPEC wants to keep the current oil output cut at the same level at least until June, while considering the possibility of increasing reductions if the spread of the new coronavirus significantly hurts the demand for fuel in China, OPEC sources said.

Meantime, it was reported, that British Airways suspended all direct flights to and from China after Britain delivered warning against all but vital travel to the country. And top of that aviation fuel demand has plummeted in Asia as air carriers halted flights.

The next OPEC meeting is scheduled for March, in Vienna.

Meanwhile, the U.S. oil inventories lowered by 4.3 million barrels per week, which ended on January 24, falling short of analysts predictions of a 482,000 barrels growth, according to the American Petroleum Institute (API) data.

Source: Reuters