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| Commodity News |
| HeadLine : |
Oil Hits 9-Week Lows as Coronavirus Is Cited as 'Black Swan' Event |
| Date : |
Jan 24 2020 |
The fear of the unknown has become bigger in oil’s pricing than the known barrels out there. Crude prices hit nine-week lows on Thursday as a global risk flight on fears over the new coronavirus pushed the oil market closer to its worst monthly loss since May. New York-traded West Texas Intermediate, the benchmark for U.S. crude, sunk for a fourth straight day, settling down $1.15, or 2%, at $55.59 per barrel. Earlier in the session, WTI sunk to $54.77, its lowest since the week of Nov. 17, as traders ignored a relatively neutral weekly supply-demand report from the Energy Information Administration to focus on the potential fallout from the new coronavirus, known as the 2019-nCoV. London-traded Brent, the global crude benchmark, was down rose $1.94, or 2.9%, to $68.19. It hit $69.48 (earlier). Brent hit a seven-week low of $61.26 earlier. With just about a week left to January, WTI is down 9% on the year, putting it on track to its worst monthly loss since the 16.3% decline in May. Oil's fortunes have nosedived since a 35% gain for WTI in 2019 and 24% for Brent. The market appeared to be on good footing just after the New Year began as U.S.-Iran tensions initially sent crude prices rallying. But that upside was quickly lost as calm returned to the Middle East, and oil bulls have had trouble since capitalizing even on supply blockades in major producing countries Libya and Iraq.
Source: Investing.com
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