Oil Prices ///
Oil continued to plunge after closing at a 13-month low as more new coronavirus cases were reported outside of China, adding to fears the world is on the brink of a pandemic that will stunt economic growth.
Pakistan’s main buyer of liquefied natural gas is considering canceling two long-term contracts as a slump in spot prices and abundant production create opportunities for cheaper supply, according to people familiar with the situation.
“By the end of April, we will not have that fear,” Ibrahim Al-Buainain, chief executive of Aramco Trading, said in an interview in London. “I am confident that the support and measures taken by countries will contain the virus.”
There are already signs that the latest U.S. sanctions thrown at Venezuela are failing.
John Clegg, Weatherford
In an era of low oil prices, how do we break even?
Renewed fears that the coronavirus will harm global growth rocked commodity markets again on Monday, with oil and metals prices tumbling while gold soared toward $1,700 an ounce amid a flight to haven assets.
Hedge funds are bracing for more trouble in the oil market, even after crude rebounded for a second week on hopes the coronavirus outbreak’s threat to economic growth is waning.
Mexico plans to lock in prices for the country’s crude output for next year, continuing the world’s largest sovereign oil hedge, Finance Minister Arturo Herrera said.
Saudi Arabia gave the clearest signal yet of its concerns about the impact of the coronavirus on oil markets, comparing the situation to a blaze that needs the fire brigade.
Crude is being supported along with equities by signs that China, the world’s biggest oil importer, is considering steps to shore up its economy, such as direct cash infusions and mergers to revive its airline industry.
Citigroup Inc. said that markets are overconfident in expecting a v-shaped recovery and oil prices are likely to remain weak during the first half of the year.
With the market less panicky, hedge funds kept their bets against West Texas Intermediate crude little changed in the week ended Feb. 11, data released Friday showed
The warning comes amid a pricing disagreement between the two former Soviet republics, with Russian producers curtailing crude supply to the neighboring country this year.
The spree is probably a sign that independent refiners are getting ready for an eventual rebound in demand, taking advantage of the slump in crude prices to buy cheaply.
The global glut of the fuel has seen prices plunge in the U.S., Europe and Asia as a wave of liquefied natural gas hits the market. Associated gas from oil fields in North America also boosted supplies at a time when demand growth is under threat from a slowing global economy and the coronavirus.
Chinese refiners have used oil’s earlier drop to snap up cheap cargoes, taking many traders by surprise.
President Vladimir Putin, who plays a decisive role in OPEC+ oil policy, hasn’t yet decided whether Russia will support the group’s proposal for deeper production cuts.
Global oil demand will drop this quarter for the first time in over a decade as the coronavirus batters China’s economy, the International Energy Agency said.
Russia’s key oil producers voiced support for the idea of extending OPEC+ output cuts into the second quarter, as the global oil market awaits a definitive response to the coronavirus outbreak.
Oil held above $51 a barrel as investors shrugged off a government report showing U.S. crude stockpiles rose for the third straight week.