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Oil futures fell Thursday, feeling renewed pressure as worries rose over the potential economic impact from the continued spread of the coronavirus.
West Texas Intermediate crude for March delivery CLH20, -2.44% on the New York Mercantile Exchange fell $1.27, or 2.4%, to $52.06 a barrel, after trading as low as $51.95 — the lowest intraday level for a most active since Oct. 10, according to FactSet. April Brent crude BRNJ20, -2.63% dropped $1.15, or 2.2%, to $52.18 a barrel.
Chinese authorities on Thursday said more than 7,700 people have been infected, with at least 170 dead. World Health Organization officials expressed “great concern” over the virus’s spread outside of China. The World Health Organization was expected to meet Thursday to weigh if the outbreak should be declared a global emergency, news reports said.
“Concerns about today’s WHO meeting and the possibility the coronavirus will be declared a global emergency and the effects that could have on the Chinese and global economies, has the market in risk off mode today,” said Robert Yawger, director of energy at Mizuho Securities U.S.A., in a note.
“A number of international flights to China have been canceled and if this trend continues in the coming days and weeks it will likely only deepen demand concerns,” said Warren Patterson, head of commodities strategy at ING, in a note. In recent days there have been suggestions that OPEC+ might be forced to make further cuts, particularly if the market continues to trend lower.”
WTI, the U.S. benchmark, ended lower Wednesday, giving up earlier gains after government data showed a larger-than-expected climb in weekly crude inventories.
In other energy trading, March gasoline RBH20, -2.52% fell 2.5% to $1.5016 a gallon, while March heating oil HOH20, -2.61% was off 2.5% at $1.6619 a gallon.
March natural-gas futures NGH20, -1.23% were down 0.9% at $1.848 per million British thermal units.
Analysts surveyed by S&P Global Platts expect the Energy Information Administration later Thursday to report a 207 billion cubic feet withdrawal of natural gas from storage in the week ended Jan. 24. That would compare with a withdrawal of 171 billion cubic feet in the same week last year and a withdrawal of 92 billion cubic feet in the week ended Jan. 17, as well as the five-year average draw of 143 billion cubic feet, according to S&P Global Platts.
