Crude Oil Prices Rise for a Second Day in a Row

Prices of the benchmark crude oil futures are ticking higher for the second day in a row. Oil prices had declined for five straight days prior to this recovery.

Oil prices were negatively affected after OPEC announced that they could extend supply cuts in order to insulate fading demand thanks to the coronavirus outbreak in China. A decline in inventory levels out of the United States helped stem the bloodbath.

The international benchmark, Brent crude oil futures contract, as of 1 am GMT, was up 33 cents to trade at $59.84 a barrel.

The U.S. West Texas Intermediate (WTI) crude oil futures contract added 31 cents to trade at $53.79 a barrel.

Global financial have been hit by the spread of the viral outbreak in China. There are coronavirus patients outside of China and hundreds have died. The World Health Organization, however, says that that there is no pandemic as of yet.

In Hong Kong, the City’s leader Ms. Carrie Lam, has declared an emergency regarding the coronavirus. She has announced further measures to limit Hong Kong’s connection with China.  To help stop the spread of the virus. All flights and high speed trains to China from Hong Kong to Wuhan, in China, are suspended.

Crude Oil Traders wait on the FOMC rate Announcement  

Today, all eyes are on the first monetary policy and rate decision from the U.S. Federal Reserve. This will happen later during the North American trade session.

The Federal Reserve, through their monetary policy arm, the FOMC, is expected to stay neutral with their monetary policy. The Fed is also expected to keep their Fed Funds rate steady at 1.50 to 1.75 percent.

Market participants will pay close attention to comments from Fed Chair Jerome Powell. They will also dissect the Federal Open Market Committee (FOMC) monetary policy statement for any change with the central bank’s forward guidance regarding monetary policy, economic outlook and rate guidance.