Angel Broking's report on Crude Oil
On Wednesday, WTI Crude prices plunged over 2.3 percent to close at $48.7 per barrel as the rapidly spreading Coronavirus continued to dent the demand prospects for Crude. Increase in number of cases outside China deepened the concerns over a possible economic slowdown which would in turn dent the demand for Crude. Markets assessed that the lethal virus breakout could lead to a far greater economic damage than initially thought which led to a significant downfall in oil prices. The OPEC+ stated that they would further trim their output to counter the slumping demand due to the coronavirus outbreak in the major Crude consumer, China. OPEC+ plans to meet in Vienna on 5 th -6 th March 2020. As per reports from the Energy Information Administration (EIA), U.S. Crude inventory levels increase by 452,000 barrels to 443.3 million barrels much lower than the market expectation of 2-million-barrel rise.
Rising number of cases of the Coronavirus might further dent the demand worries for Crude and push the prices lower. On the MCX, oil prices are expected to trade lower today.
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