Coronavirus: Oil price rises as virus spread slows
Oil prices rose today amid hopes the coronavirus may have reached its peak.
The 2.5 per cent rise was also put down to the US taking action against a Rosneft subsidiary supplying the Venezuela, helping limit supply further.
Brent crude was up $1.47, or 2.6 per cent at $59.22 a barrel this evening.
“There’s more optimism that maybe this disease is peaking, Price Futures analyst Phil Flynn told Reuters.
“The market is pricing in the possibility that we can get back to normal quicker, and that’s going to be very bullish for oil demand.”
He also said Beijing’s measures such as pumping cash into its economy following the outbreak may also be behind the price hike.
S&P backed analysis from the International Energy Agency, stating the virus would deliver a ‘short-term blow’ to Chinese economic growth in the first quarter.
China has been forced to quarantine cities, restrict travel and suspend key industries to prevent the coronavirus from spreading.
The World Health Organisation has warned however it is too soon to be certain whether the virus is being contained successfully.
It is believed to have killed over 1,000 people in China with a small number of deaths also reported overseas.
Several industries have reported disruption from the outbreak which began in the city of Wuhan.
As market analysis shows demand for oil could be rising, US production is expected to rise to a record 9.2m barrels a day next month.