WTI Crude Oil Weakens as Coronavirus’s Economic Impact Back in Focus
Early on Tuesday, WTI crude oil prices edged lower as concerned about the coronavirus outbreak’s impact on China’s economic growth and its impact on oil demand weighed on the markets once again. At the time of writing, WTI crude oil is trading around $51.67 per barrel.
The sentiment in global financial markets deteriorated all over again after Apple and other companies warned of possible shortages in supply of products as a result of the prolonged shutdown across Chinese factories. Apple, on Monday, cautioned that it would not be able to meet its revenue guidance for Q1 2020 in the wake of the outbreak which has driven production as well as demand in China lower.
There was, however, a slight hope for recovery in oil demand after some Chinese refineries snapped up crude supplies after several weeks, which raised expectations of possible recovery for oil demand in China, the world’s largest energy consumer. Crude oil prices also received some support over expectations that OPEC and its allies will soon announce additional curbs in crude production in a bid to balance the reduced demand for oil in global markets.
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