Oil: Further hits to demand – ANZ

Crude oil prices fell for a third straight session as the spreading of the coronavirus raised concerns of further hits to demand, analysts at ANZ reports.  WTI is being negotiated at $49.30.

Key quotes

“The number of infections in the Middle East rose, with most cases linked to Iran. This saw Bahrain temporarily halt flights from Dubai and Sharjah, transit points for Iran travellers.”

“OPEC tried to talk down the impact, with Secretary-General, Mohammad Barkindo, suggesting demand will continue to grow. Saudi Aramco CEO, Amin Nasser, said the outbreak will have only a short-term impact on markets.” 

“Supply-side issues continue to bubble away in the background. Libya’s oil output stood at just122kb/d as of 23 February, down from 1.22mb/d before force majeure was declared on 18 January.”