Crude oil prices were little changed Tuesday as fear energy demand would be negatively impacted long-term by the coronavirus outbreak offset prospects for more crude production cuts by Opec+ members.
Brent crude gained 5 cents to end Tuesday trading at $54.50 per barrel, while U.S. West Texas Intermediate crude was up 3 cents, to $50.14/Bbl, Kallanish Energy reports.
Crude fell sharply over the past two weeks on concerns over the global economic impact of China’s coronavirus.
In early Tuesday trading, oil went higher on the possibility of additional output cuts from Opec+, which includes most members of Opec, plus 10 non-Opec producers, led by Russia.
An Opec+ committee Tuesday discussed the impact on global oil demand and economic growth of the outbreak of the coronavirus at a meeting in Vienna. China’s envoy to the United Nations in Vienna also was part of the discussions.
Sources told Reuters Opec+ was considering cutting crude output by an additional 500,000 barrels per day, which would bring the total production cuts to 2.2 million barrels per day.
Price gains were also limited by Russian Energy Minister Alexander Novak’s comments he was uncertain it was time to tighten oil output curbs.
BP’s chief financial officer, Brian Gilvary, told Reuters the economic impact of the virus will reduce oil consumption on the whole year by 300,000 to 500,000 Bpd, roughly 0.5% of global demand.
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