The epidemic of the coronavirus continues, industrial production in China has stopped. Because of this, yesterday, there was a decline in oil prices to annual lows caused by the decrease in fuel demand in the Celestial Empire. Today, the market is showing the expected correction.
At 8.10 am Moscow time, Brent crude oil futures increased 1.33% or 0.71 US dollars and were trading at 53.98 US dollars per barrel. We recall that yesterday Brent decreased by $ 1.2 (2.2%) and closed at a value of $ 53.27 per barrel.
WTI crude oil also shows the growth: by the same time, it amounted to $ 0.62 or 1.25%. During yesterday’s trading session, the asset lost $ 0.75 (1.49%) and closed at $ 49.57 per barrel.
The recovery of the US stock market, which happened due to strong corporate reporting and strong indicators of economic growth, caused the increase of energy quotes. Coronavirus, however, continues to rage, which means that “bearish” pressure on the energy market will remain until the situation with a drop in demand improves.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group