After dropped below US$50 a barrel on Tuesday, oil price boosted by the Organization of the Petroleum Exporting Countries (OPEC) and its allies further output cuts in the coming meeting - Photo by OPEC

JAKARTA (TheInsiderSTories) – After dropped below US$50 a barrel on Tuesday, oil price boosted by the Organization of the Petroleum Exporting Countries (OPEC) and its allies further output cuts in the coming meeting. The decision has been taken to counter a potential squeeze on global oil demand resulting from China’ fast-spreading coronavirus, the producers announced.

This morning, Brent crude oil futures were up 0.8 percent to $54.40 a barrel and US West Texas Intermediate (WTI) crude futures jumped 0.9 percent to $50.03 a barrel. Yesterday, WTI closed below the level of  $50 per barrel for the first time in a year, amid concerns over the impact of the coronavirus outbreak.

OPEC and its allies has met China’ envoy to the United Nations in Vienna, Switzerland, on Tuesday. Based on the information, the producers will held the 178th (Extraordinary) Meeting of the OPEC Conference and the 8th OPEC and non-OPEC Ministerial Meeting on Feb. 20, 2020.

OPEC+ was originally scheduled to hold a ministerial-level meeting in March, but the group is considering whether to hold the meeting earlier.

The virus outbreak that has claimed at least 490 lives in China and infected more than 20,000 people has threatened the market by reversing trade flows. The additional deaths have all come from Hubei Province, the epicenter of the virus outbreak.

Death toll in China was recorded at 492 people until Tuesday night. Meanwhile, deaths outside of China occurred in the Philippines and Hong Kong as many as one person each. An additional 3,887 people were confirmed to be infected with the corona virus so that the total number of people with the virus so far in the country reached 24,325 people.

From a total of 24,551 cases of coronavirus infection throughout the world, 2,792 of them are in critical condition. On the other hand, the number of patients who were declared cured also increased to 907.

This virus has also spread to 27 other countries in Asia and Europe. Following China in succession were Japan, Thailand and Singapore, which recorded 33, 25 and 24 cases.

This outbreak is estimated to have cut 20 percent of China’ oil demand. Some analysts rated, this crisis could erase one third of global consumption growth this year. Traders also worried that the sell-off caused by this virus has pushed oil prices to alarming levels.

Written by Staff Editor, Email: theinsiderstories@gmail.com