Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Oil mixed as government pledges reach $5 trillion in coronavirus chaos

Published 2020-03-27, 01:06 a/m
© Reuters. A pump jack operates in front of a drilling rig at sunset in an oil field in Texas
LCO
-
CL
-

By Aaron Sheldrick and Sonali Paul

TOKYO (Reuters) - Oil prices were mixed on Friday as governments took unprecedented steps to limit the economic fallout from the coronavirus pandemic.

Brent crude was down 34 cents, or 1.2%, at $26 a barrel by 0726 GMT. U.S. crude was up 8 cents, or 0.4%, at $22.68.

Both of the benchmarks are down nearly two-thirds this year and the slump in economic activity and fuel demand has forced massive retrenchment in investment by oil and other energy companies.

Oil requirements around the world may drop by 20% as 3 billion people are in lockdown, the head of the International Energy Agency said as he called on major producers like Saudi Arabia to help stabilize oil markets.

"It's going to be a very uncertain year for us from a price point of view," Peter Coleman, the head of Australian oil and gas developer Woodside Petroleum told investors on a conference call on Friday.

Leaders of the Group of 20 major economies pledged on Thursday to inject over $5 trillion into the global economy to limit job and income losses from the coronavirus and "do whatever it takes to overcome the pandemic."

While analysts doubt the moves will prevent the global economy from sliding into recession, they say the lifelines to companies and consumers will ease tattered nerves and help ensure a strong recovery when demand picks up again.

The United States has now passed China and Italy as the country with the most coronavirus cases, according to a Reuters tally, as the country faced a surge in hospitalizations and looming shortages in supplies, staff and sick beds.

Mainland China reported its first locally transmitted coronavirus case in three days and 54 new imported cases, as Beijing ordered airlines to sharply cut international flights, for fear travelers could reignite the coronavirus outbreak.

© Reuters. A pump jack operates in front of a drilling rig at sunset in an oil field in Texas

Nonetheless, global markets have seen a return of buying interest in recent sessions as governments and central banks roll out additional stimulus measures.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.