Wednesday, 19 February 2020 18:49 WIB |
Oil rose to a two-week high on hopes that economic stimulus from China can revive demand battered by the coronavirus, and as a number of OPEC nations faced threats to their production.
Brent futures increased for a seventh day, the longest run of gains since early 2019, even as Chinese refineries slashed processing by 25% from last year as the virus hit travel and economic activity.
Crude is being supported along with equities by signs that China, the world™s biggest oil importer, is considering steps to shore up its economy, such as direct cash infusions and mergers to revive its airline industry.
Prices are also drawing support from a range of supply disruptions.
Cease-fire talks were suspended in OPEC member Libya after the capital™s port was shelled by forces loyal to military commander Khalifa Haftar, who has choked off the country™s exports. And Venezuela™s ability to export crude was further threatened as the U.S. sanctioned a unit of Russia™s Rosneft PJSC for maintaining ties with President Nicolas Maduro and the state-run oil company.
Brent for April settlement climbed 79 cents, or 1.4%, to $58.54 a barrel on the ICE Futures Europe exchange as of 10:29 a.m. in London, after gaining more than 8% in the past six sessions. West Texas Intermediate for March delivery advanced 71 cents, or 1.4%, to $52.76.
Source : Bloomberg