Oil prices are falling on Tuesday. Investors are still analyzing measures aimed at resolving the situation around the coronavirus epidemic.
At 8 am Moscow time, April contracts of Brent crude oil lost 1%. At past trade, the price rose 35 cents and closes at $ 57.65 per barrel.
At the same time, futures of the American WTI oil fell by 40 cents and were trading at a price of 51.65 US dollars. We recall that on Monday, there was no trade due to the celebration of Presidents’ Day.
Analysts believe that markets will recover quite quickly, but it is not yet known when to expect it. They believe that oil will remain at low prices for the first half of this year. Correction will happen only at the end of 2020. Demand for fuel in China could fall by 3.4 million bpd. The average decline in demand in the first quarter will be about 1.5 million b / d. The annual rate will be equal to 0.4 million.
The Central Bank of China has lowered the rate on medium-term loans. This was done to improve the situation for business under the circumstances. So, the bank has allocated 200 billion yuan to deal with the consequences of the epidemic. In addition, another 100 billion received from 7-day reverse repo was pumped into the economy.
Singapore has promised to introduce measures to mitigate the downturn in tourism and trade too.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group