Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts continue to push lower. Overnight, oil fell over two percent on a fresh batch of negative coronavirus headlines.
There have been hundreds of new cases reported in Asia, Europe and the Middle East. Traders are worrying that the demand for oil will decline as global economies and production decline. Economic data, out of the United States, showed that oil stockpiles rose last week.
Overnight, the international Brent crude oil futures contract closed down $1.52 or 2.7 percent lower at $53.43 per barrel. During the Asian session the Brent contract is currently down 69 cents or another 1.14 percent.
The U.S. West Texas Intermediate (WTI) crude contract, for front end delivery settled down 2.34 percent or down $1.17 at $48.73 per barrel. The WTI contract is currently down 64 cents or 1.3 percent at $48.10 per barrel.
Goldman Sachs cuts Crude Forecasts and U.S. Inventory Data Watched
Goldman Sachs released a report overnight that saw them reducing their 2020 demand for the black gold to 600,000 barrels per day from 1.2 million barrels per day. The investment giant also reduced their Brent price forecast from $63 to $60.
Yesterday, the Energy Information Administration (EIA) released weekly U.S. inventory levels. Last week saw the U.S. stockpiles growing less than expected by 452,000 barrels to 443.3 million barrels. Analysts has expected a two million barrel increase for that week.
The Coronavirus continues to Rattle Nerves and Dampen Sentiment
Health officials around the world are fighting to contain the spread of the coronavirus. This contagion is now in 30 countries and six continents. However, Wall Street traded higher after selling off for two straight days but trader sentiment remains overall risk-off.
The head of the World Health Organization (WHO) said that the sudden increase in new coronavirus cases is “deeply concerning.” He said that the virus could still be contained and is not yet a global pandemic.
