WTI holds over $ 51. Has the oil market reached its bottom?

Oil has remained at stable levels after the WHO quelled concerns about the sharp rise in those diagnosed with COVID-19 in Hubei.

WTI holds over $ 51 a barrel. Traders initially reacted negatively to the first Hubei data. With the improvement of sentiment risk, the price was able to push back from its daily low.

The market is feeling more confident that we have reached some bottom. The oil market appears to have assessed the negative effects on demand for coronavirus. The issue is not to increase the incidence of infected and dead outside China.

The IEA lowered its Q1 oil demand forecast for the first time in a decade, citing precisely the negative effects of the virus on the Chinese and global economies.

Hopes that OPEC can intervene to stabilize the market also remain in the background.

Russia does not give a clear answer whether it intends to reduce production by 600,000 barrels per day.

BRENT also went up by about 0.7% in the day.

Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.

 Trader Martin Nikolov

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