- March ICE Brent crude futures fell 70 cents/b (1.11%) at $62.51/b.
- NYMEX March light sweet crude contract fell 79 cents/b (1.40%) at $55.95/b.
- Crude oil futures earlier collapsed more than 2% to settle at six-week lows.
- The American Petroleum Institute estimated a 1.57 million barrel increase in US crude oil stockpiles.
Crude oil futures fall more than 1% on coronavirus-related demand concerns, reports Platts.
Crude futures fall
Crude oil futures fell more than 1% in mid-morning trade in Asia Thursday as concerns of slower jet fuel demand emerged amid the recent rise in coronavirus-related cases and deaths Wednesday.
At 10:55 am Singapore time (0255 GMT),
- March ICE Brent crude futures fell 70 cents/b (1.11%) from Wednesday’s settle at $62.51/b,
- the NYMEX March light sweet crude contract fell 79 cents/b (1.40%) at $55.95/b.
Six-week low
Crude oil futures earlier collapsed more than 2% to settle at six-week lows Wednesday.
Coronavirus reported cases
- Nearly 500 cases have been reported and 17 reported deaths attributed to the current Wuhan coronavirus (novel coronavirus 2019-nCoV) as of Wednesday.
- Apart from China, cases have also been reported in Thailand, South Korea, Japan, and the US, according to the US Centers for Disease Control and Prevention.
An analyst said, “With the Lunar New Year holidays about to start, there are fears that one of the globe’s busiest travel periods could be impacted.”
Crude inventories forecast
Expectations of higher crude inventories also added to bearish pressure.
Strong rise in inventories
The analyst added that the market is expecting this week’s US EIA [Energy Information Administration] report to show a strong rise in inventories, as well as strong gains in US shale oil output.
US crude oil stockpiles
The American Petroleum Institute, meanwhile, estimated a 1.57 million barrel increase in US crude oil stockpiles on the week, adding to concerns that the supplies were high at present, according to OCBC analysts quoting API data on Thursday.
As of 0255 GMT, the US Dollar Index was down 0.09% at 97.295.
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Source: Platts
