Oil prices have slipped on Monday as global and political affairs have taken their toll on commodity prices as updates came from the UK, OPEC and more on the coronavirus.
As Boris Johnson now looks to get his Brexit deal implemented in time for the next deadline, the British Pound has seen a slump however oil prices seem to have taken a dive.
In other notable updates, the coronavirus has also been taking its toll on global markets as Chinese investors and businesses continue to worry over the spread of the deadly disease, as affected individuals rises to around 17,000.
Oil prices have moved slightly higher which is worth a mention as OPEC+ said that they would be considering an additional 500,000 barrel per day cut to production.
US West Texas Intermediate has slipped 0.35% to trade at $51.45, and earlier slipped to its lowest value of $50.42.
Brent Crude prices have dropped more significantly to $56.12, seeing a 3.56% fall on Monday. The day’s high for Brent Crude was recorded at $56.77 whilst lows of $55.43 have been seen.
The coronavirus has taken its toll on Chinese stocks, as trading commenced for the first time since the turn of the Chinese new year investors erased $393 billion from China’s benchmark equities index.
Many investors took the decision to sell the yuan and commodities following developments on the potential of virus threats spreading across the globe.
This morning it was reported that the UK Government had pledged £20 million to CEPI to progress the development of a global vaccine that would help fight the coronavirus.
Iranian Oil Minister Bijan Zanganeh said the spread of the coronavirus had hit oil demand and called for an effort to stabilize oil prices, according to Reuters.
“The oil market is under pressure and prices have dropped to under $60 a barrel and efforts must be made to balance it,” he said.
Notably, the Shanghai Composite Index nosedived 8% over coronavirus fears following a period of closure for the New Year period in China.
Jasper Lawler at spreadbetting firm London Capital Group said:
“From a stock market perspective, our best hope in the short term might be China’s ‘National Team’. If state-linked institutions can do enough buying off the lows in the next day or so, a bear market can be overturned.”
The state of global and world affairs is looking bleak right now, and global governments do not seem to be responding to the issues that actually need attention.
The coronavirus outbreak is spreading quicker than the news can keep up with – Boris Johnson is set to argue with the EU over Brexit withdrawal terms and Donald Trump is caught up in a balance between being impeached whilst planning a strategy for his next election cycle.
Both commodities and foreign exchange markets have been bruised over the last few months, and particularly in the UK where there have been elections, votes and Brexit updates.
However, the coronavirus is continuing to make news headlines as the number of affected people rises and there has to be a clear concise plan going forward if this is going to be addressed.
