Crude Oil WTI Futures Market News and Commentary
Mar WTI crude oil (CLH20) on Wednesday closed down -1.64 (-2.81%), Mar Brent crude oil (CBH20) closed down -1.38 (-2.14%), and Mar RBOB gasoline (RBH20) closed down -0.0575 (-3.48%).
The energy complex sold off Wednesday to 1-1/2 month lows on continued concern that the spread of the deadly Chinese coronavirus will undercut energy demand. Goldman Sachs on Wednesday warned that the spread of the virus may cut global oil demand by -260,000 bpd this year. There is concern the virus may spread further as hundreds of millions of Chinese prepare to travel across the country and globally for the New Year holidays that begin this Friday.
Another bearish factor for crude was the decline in the crack spread on Wednesday to a new 4-1/2 month low, which discourages refiners from purchasing crude oil to refine into gasoline.
Crude prices still have negative carry-over from Tuesday when IEA Executive Director Birol said, "the world is awash with oil, mainly coming from the U.... Read more