By Alex Ho
Investing.com – Oil Prices rebounded from the lowest level in more than a year on Tuesday in Asia, but analysts said the recent coronavirus outbreak remained as a major headwind for the markets.
U.S. rose 1.3% to $50.20 by 12:20 AM ET (04:20 GMT), while international also gained 1.3% to $53.98.
Despite today’s gains, oil markets remained under pressure from worries over weakening demand due to the coronavirus.
In a note sent to clients, Ned David Research said the coronavirus is a “true black swan” for the oil and energy market for this calendar year.
Analyst Warren Pies noted that the outbreak has reduced Chinese demand for oil by 2 million to 3 million barrels per day, which means “the oil market is looking down the barrel at no demand growth for the calendar year, and outright demand contraction is now on the table.”
The firm downgraded its outlook on oil in late January, and warned that there could be more downside ahead.
The number of coronavirus deaths in China rose to 1,016, China’s National Health Commission said, adding that and the number of confirmed cases have topped 42,600.
Last week, the oil markets posted a fifth straight losing week. Combined losses over the five weeks stood at more than 22% for both benchmarks, leaving them in bear market territory.
would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.