Crude oil prices rallied as the lowest daily number of new coronavirus cases since late January fed hopes that an end to the epidemic could be in sight
China reported the lowest number of 2019-nCOV cases in 2 weeks in a boost to risk sentiment. The latest daily count of 2,015 new cases represented the smallest daily increase since January 30.
The U.S. EIA reported on Wednesday. During the week to February 7, commercial inventories of crude oil in the U.S. increased by 7.5 mil bbls to 435 mil bbls, versus expectations for a 3 mil-bbl rise. Crude stockpiles at the Cushing, Oklahoma, hub built up by 1.7 mil bbls.
Kazakhstan's energy ministry said on Wednesday. Kazakh Energy Minister Nurlan Nogayev, who was in Moscow for talks, said no decision had yet been reached. "We will agree out positions (with each other) because Kazakhstan and Russia are strategic partners," he said.
OPEC’s research arm slashed its forecast for 2020 growth in global oil demand on Wednesday, adding that OPEC’s production fell sharply in January due to new supply curbs. In its latest monthly report, OPEC forecasted that the world’s oil demand in 2020 will rise by 990,000 bpd, marking a downward revision of 230,000 bpd from the previous report. OPEC also said that 2020 demand for OPEC’s oil will average 29.30 mil bpd, which was 200,000 bpd less than previously forecasted. "The impact of the coronavirus outbreak on China's economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global oil demand growth," OPEC wrote. "Clearly, the ongoing developments in China require continuous monitoring and assessment."