AFP, Singapore :
Oil prices fell Wednesday, as concerns about the rapidly spreading coronavirus pandemic and an escalating
price war eclipsed pledges by major economies to launch stimulus measures. Both main contracts initially opened higher in Asian trade but slipped into the red in the afternoon, tracking falls on most bourses in the region.
US benchmark West Texas Intermediate was down 2.5 percent at $26 a barrel, while international benchmark Brent lost 1.5 percent to $28. Crude has slumped close to 17-year lows in recent days, with travel restrictions and other measures aimed at combating the virus hitting demand and major producers Saudi Arabia and Russia locked in a price war.
Both main contracts suffered freshs elling after Riyadh said it plans to boost exports to more than 10 million barrels per day. The world’s biggest exporter said it would free up an additional 250,000 bpd of oil for exports by using gas for domestic consumption. The commodity had enjoyed an early advance Wednesday after US and European governments indicated they will unleash more stimulus measures, with the United States flagging a package of more than $1 trillion.
“The ongoing producer price war, and the exponential increase in countries closing borders, crushed any rebound hopes,” said Jeffrey Halley, senior market analyst from OANDA.
