ZCZC
BCN-01
OIL-ENERGY-MARKET
Oil prices seesaw in early Asian trade
SINGAPORE, March 11, 2020 (BSS/AFP) – Oil prices seesawed in early Asian
trade Wednesday, a day after a strong rebound from a major rout triggered by
the start of a price war between Riyadh and Moscow.
West Texas Intermediate fluctuated between small losses and gains, with
the price hovering around $34 a barrel, while Brent crude was up around 0.5
percent at $37 a barrel.
Prices had surged over 10 percent Tuesday, a day after plunging almost a
third in their biggest one-day drop since the Gulf War in the 1990s.
Despite the rebound, investors remain on edge after energy titan Saudi
Aramco indicated Tuesday it would flood the market with crude — and Russia’s
energy minister hit back, saying it could also ramp up production.
Monday’s rout was triggered by Riyadh driving through the biggest price
cuts in two decades at the weekend, following Moscow’s refusal to agree to
reduce production.
Saudi Arabia and others from oil-exporting cartel OPEC led a push last
week to reduce output further to shore up prices amid slumping demand due to
the new coronavirus.
But Moscow, the world’s second-biggest oil producer, blocked the move —
signalling an alliance with OPEC that was aimed at supporting the market was
unravelling.
Analysts said positive sentiment was underpinned by the US administration
promising relief measures to combat the coronavirus, but warned the outlook
was still uncertain.
“Oil investors are taking comfort, and prices are finding support, from
the White House administration plans for economic stimulus and a slowdown of
new COVID-19 cases in both China (and South Korea),” said Stephen Innes,
chief market strategist at AxiCorp.
BSS/AFP/FI/ 0812 hrs