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Oil Rebounds due to Hopes for ShortTerm Virus Effect

Oil steadied on Tuesday as investors hunted for bargains after main crude oil indicators plunged almost 4 percent during the prior settlement, although worries over the coronavirus spread to outside of China deteriorated the most part of economies and affected fuel demand limited gains.

oil rates recover Photo: Flickr

International benchmark for Brent futures with delivery in May grew by 0.72 percent, to $56,17 per barrel, while WTI light crude futures with delivery in April added 0.70 percent, to $51,78 per barrel at 0758 GMT after losing 3.8 percent on Monday, marking the worst intraday decline since February 3.

Demand concerns dragged prices for oil deeply down and a whole list of other raw materials on Monday, while both U.S. and European stock indexes registered their sharpest losses since mid-2016.

Meantime, the number of oil rigs in the U.S. were seen picking up for a 5th week in a row, while petrochemicals likely decreasing, according to interim Reuters survey on the expectations for the week, which ended on February, 21.

Saudi Aramco hopes that the Wuhan virus impact on fuel demand would be of temporary nature, however, and for consumption to advance in the next part of the year, Chief Executive Amin Nasser said Reuters the prior day.

Source: Businessinsider