Faced with coronavirus, oil at its lowest for a year in New York

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France Media Agency

The US benchmark barrel, WTI, for April delivery fell 2.3%, or $ 1.17, to close at $ 48.73.

In London, a barrel of North Sea Brent for same-maturity delivery fell $ 1.52, or 2.8%, to close at $ 53.43.

Since last Thursday, WTI has lost 9.4% and Brent 9.9%.

“Fears of a global COVID-19 pandemic are increasing following the latest information from Europe and the United States and are also affecting financial markets: investor confidence is suffering greatly,” explained Eugen Weinberg, analyst for Commerzbank.

The epidemic that began in December in central China has already reached a peak in this country, where it has infected some 78,000 people, more than 2,700 of whom have died, Chinese authorities said on Wednesday.

But it is affecting more and more countries and the epidemic has landed in Latin America, so far spared, entering through Brazil, while continuing to spread in Europe and Asia, stoking anxiety in the world. whole.

Crude prices accelerated their fall at the end of the session Wednesday “after press reports referring to tests carried out on more than 80 people in Nassau County,” near New York, said Robert Yawger of Mizuho. “If cases are confirmed, it would drastically increase the number of people affected in the United States,” he added.

US President Donald Trump was scheduled to speak on this crisis at a White House press conference that evening at 6 p.m. attended by officials from the US Centers for Disease Control and Prevention (CDC ).

“The fear of a pandemic is clearly the main concern of financial markets at the moment,” added Daniel Ghali, of TD Securities. “The energy market is particularly vulnerable, as it suffers directly from measures taken to limit the spread, including restrictions on travel.”

Prices recovered a little during the session after the publication of the weekly report by the US Energy Information Agency (EIA) showing a much smaller increase than expected in crude stocks in the United States and a significant decrease in reserves of gasoline and distilled products in the country.

But this respite was temporary and prices quickly started to fall.

In this context, market participants are on the lookout for any sign of the intentions of members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia, who are meeting next week in Vienna. , Austria, to agree on a strategy to support classes.

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