A total of 20,000 cases of the new coronavirus have been confirmed nationwide, with 425 deaths, according to the latest news on Tuesday morning in Asia. U.S. oil and Brent crude officially entered a bear market on Monday on concerns that a pneumonia outbreak could cloud the outlook for economic growth, which in turn could affect demand for crude. Oil prices extended their losses in Asian morning trading on Tuesday, with China’s main oil futures contract opening down more than 6 percent.
A total of 20,000 new cases of coronary pneumonia were diagnosed nationwide
According to the national WeiJianWei latest bulletin, Feb. 3 0-24, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps report new confirmed cases, 3235 cases (2345 cases), hubei province, the new severe cases 492 cases (442 cases), hubei province, the new death cases, 64 cases (64 cases), hubei province, the new hospital cured cases 157 cases (101 cases), hubei province, the new suspected cases 5072 cases (3182 cases) of hubei province.
Oil officially enters a bear market
U.S. WTI crude for March delivery closed down $1.45, or 2.8 percent, at $50.11 a barrel on Monday, its lowest close since January 2019, while marking the start of a bear market for the oil sector as it fell 20.8 percent from a high of $63.27 a barrel on Jan. 6.
Brent crude for April delivery closed down $2.17, or 3.8 percent, at $54.45 a barrel on Monday, its lowest close since Dec. 31, 2018. Brent, down more than 20 percent since early January, also meets the definition of a bear market.
While major oil producers are considering expanding production cuts to stabilize the oil market, the outbreak has sharply challenged the outlook for crude demand, which has weighed on oil prices.
Brent crude fell below the $54 per barrel barrier in early Asian trading on Tuesday, continuing to hit its lowest level since January 3, 2019, down 0.76 percent on the day. WTI crude also fell further to $49.88 a barrel.
China’s main oil futures contract opened down more than 6 percent before extending losses to 8 percent to 395.8 yuan a barrel.
The organization of the petroleum exporting countries and its Allies are preparing an emergency cut in crude output in the wake of a bear market in oil prices, according to the financial times.
Saudi Arabia is reportedly pressing OPEC and its Allies to sharply cut crude output in the short term in response to demand concerns related to the new coronavirus. OPEC+ countries will assess the situation at technical meetings on Tuesday and Wednesday.
The international monetary fund has become less optimistic about global growth and warned that the outlook for the world economy remained bleak with no clear sign of turning the corner.
In its latest world economic outlook, the IMF cut its forecast for global growth in 2020 to 3.3 percent from 3.4 percent in October. It cut its estimate for global economic growth in 2019 to 2.9 percent from a previous estimate of 3 percent. The main reason for the downward revision in India’s slowing growth. It cut its forecast for global economic growth in 2021 to 3.4 percent from 3.6 percent in October.
Fatih Birol, head of the international energy agency, said the global oil market was expected to see a 1 million BPD oversupply in the first half of the year.
The world health organization’s director-general said on Monday it was “dangerous” that the world might not be prepared for the next pandemic.
Speaking at a meeting of the who’s the executive board in Geneva, Mr. Tantice urged 196 member states to “invest in prevention” rather than “panic”. He said funding for past outbreaks in neighboring countries was “still woefully inadequate”.