Oil prices fell about 1% yesterday, as they are under pressure due to growing concerns about fuel demand at a time when the spread of the Corona virus epidemic is increasing outside China, and at a time when major crude producers are not in a hurry to cut production to support the market.
Brent crude fell to $ 58.31 a barrel, while US crude futures fell $ 1 to $ 52.88 a barrel.
And it became the fourth largest city in South Korea, the latest point of spread of the virus, as the streets were empty of passers-by, and residents stayed home after an infection that infected dozens of what the authorities described as a "major outbreak" in a church. Singapore and Japan appear to be on the verge of recession, and the epidemic will be a major focus of the talks during the G20 finance ministers meeting early next week.
In China itself, which is the largest importer of crude oil, the number of new infections also increased yesterday, compared to the previous day even as Beijing continues to make efforts to contain the virus that has largely paralyzed the world's second largest economy. The Russian Energy Minister, Alexander Novak, said yesterday that the global energy producers realize that it is no longer logical that the Organization of Petroleum Exporting Countries (OPEC) and its allies meet before the scheduled date in early March.
The group known as "OPEC +" has been suppressing supplies from the market to support prices for several years now, and many analysts expect to extend or deepen production restrictions.
Moscow has said it will disclose its position in the coming days.
The dollar's strength added to pressure on oil prices, as investors looked for safe havens. A rise in the dollar would usually increase the cost of oil, as crude is usually priced in the US currency.
Major producers of crude are not in a rush to cut production to support the market.