SINGAPORE, April 1, 2020 (BSS/AFP) – US crude was higher in Asian trade
Wednesday but sentiment remained subdued as Saudi Arabia floods the market
with oil and the escalating coronavirus pandemic saps global demand.
Prices plunged to their lowest levels in 18 years on Monday but staged a
strong rebound the following day as investors took heart from moves by
policymakers to support the virus-hit world economy.
In early Asian trade Wednesday, US benchmark West Texas Intermediate (WTI)
was trading 1.46 percent higher at $20.77 a barrel.
Brent, the international benchmark, was unchanged at $22.74 a barrel.
A price war between major producers Saudi Arabia and Russia has led to a
supply glut at a time when world economies are being hammered by business
shutdowns and a halt in air travel due to the disease, which has killed more
than 42,000 worldwide.
ANZ Bank commodities analysts said ship-tracking data showed Saudi Arabia
had boosted crude exports over the past week from seven million barrels per
day to around nine million barrels.
This suggests that the biggest producer in the OPEC cartel is on track to
reach a record 12.3 million barrel a day in April, they said in a note.
Ignoring requests from US President Donald Trump to slow down, Saudi Arabia
is “intent on flooding the world with oil when there’s nary a demand,” said
AxiCorp global markets strategist Stephen Innes.
Innes warned of an “unparallelled oil demand destruction” as countries tip
into recession.
As of the end of March, oil prices have tanked by more than 60 percent from
levels seen at the start of the year.