According to Algeria’s energy minister, Mohamed Arkab, OPEC is considering pushing forward a meeting initially scheduled for March after oil prices dropped on concern that the spread of coronavirus would hurt oil demand. The March meeting is likely to be moved to February. OPEC will consider continuation of current cuts and possibly even deeper cuts to support a balanced market.
Crude prices are down in early trading this morning after the largest build in US Crude stockpiles in almost three months. This bearish inventory news added to the already pessimistic concerns over weakened demand caused by the spreading Chinese coronavirus. These factors are raising fears of a supply glut and are driving markets lower.
The EIA reported a larger-than-expected build for crude of 3.5 MMbbls, versus an expected build of 0.5 MMbbls. At Cushing, the EIA reported a 0.8 MMbbls build. The EIA reported distillates had a slightly larger-than-expected draw and gasoline saw a build in line with expectations.
Crude is down based on bearish inventory news and oil demand concerns because of the coronavirus. WTI Crude is trading lower this morning at $52.11, a loss of $1.22.
Fuel is down in early trading this morning. Diesel is trading at $1.6588, a loss of 4.5 cents. Gasoline is trading at $1.4870, a loss of 4.4 cents.