Oil prices edge down as traders assess China’s oil demand, await OPEC+ cuts
Oil prices edged down on Monday but held recent ranges as traders assessed China’s oil demand following the coronavirus outbreak and awaited a decision by major producers to cut output further to balance markets.
Oil is off more than 20 per cent from peaks struck in January after a spreading virus hit demand in the world’s largest oil importer and fuelled concerns of excess supplies.
Brent crude slipped to $53.63 a barrel in early Asian trade, the lowest since January 2019, before recovering to $54.37 by 0517 GMT, down 10 cents.
US West Texas Intermediate fell 8 cents to $50.24 a barrel after striking a low of $49.56.
“The overall sentiment is still bearish but markets are oversold,” said Avtar Sandu, a senior commodities manager at Phillips Futures in Singapore. He added traders took profit after prices hit technical support levels.
