Last week crude closed the week higher on the potential for deeper OPEC+ cuts and Chinese economic stimulus due to the coronavirus. In early trading this morning the market is giving back some of last week’s gains as markets asses the crude demand decline from the coronavirus versus the stimulus measures being rolled out to soften its economic impact.
OPEC+ is close to abandoning any plans for an emergency meeting this month to consider fresh production cutbacks because of the COVID-19 outbreak; though an OPEC+ committee last week recommended additional collective cutbacks of 600 kbpd – on top of the 2.1 mmbpd already being made – Russia has yet to fully endorse the plan. (Reuters)
Crude prices are down this morning. Crude is currently trading at $51.41, a loss of 64 cents.
Fuel prices are mixed. Diesel is trading at $1.6743, a loss of 2.4 cents. Gasoline is trading at $1.6007, a gain of 1.7 cents.