Oil prices fell more than 2 percent on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries outweighed concern over disruptions to Libya’s crude output.
Brent crude was down $1,39, or 2,2 percent, at $63,20 per barrel. US West Texas Intermediate crude fell 2,8 percent, or $1,64, to settle at $56,74 per barrel.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.
“Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March,” said Edward Moya, senior market analyst at OANDA in New York.
“China’s coronavirus will likely see travel restrictions that could end up hurting demand for crude during a peak travel time in China.” — Reuters.