Oil slides as demand fears outweigh hopes for bigger OPEC+ cuts
Oil prices edged lower on Tuesday as fears that energy demand would take a long-term hit from the coronavirus outbreak offset prospects for more cuts in crude production from OPEC and its allies.
Brent crude slid 4 cents to $54.41 a barrel by 1:40 p.m. EST (1840 GMT) while United States (US) West Texas Intermediate (WTI) crude lost 9 cents to $50.02.
“I think the market is still concerned that it doesn’t know the full demand destruction from the coronavirus,” said Andy Lipow of Lipow Oil Associates in Houston.
Oil slid sharply over the past two weeks on concerns over the global economic impact of China’s coronavirus. In early trading, it bounced higher on the prospect of further output cuts from OPEC+, comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia.
