Oil prices jump on coronavirus optimism

Oil prices have jumped on Wednesday morning following new developments to global affairs including an update on the coronavirus.

China today reported that it had seen its lowest number of new coronavirus cases since late January, which seems to have struck investor and business enthusiasm.

The jump in oil prices may mean that global businesses and commodity traders may remain optimistic that China is now making gains towards limiting the number of coronavirus affected individuals.

Currently, WTI Crude Oil is priced at $50.77, seeing a 1.66% jump across Wednesday trading.

Brent Crude remains volatile being priced at $55.17, another derivative that has also been boosted 1.66% by the hopeful news on the coronavirus.

Although there has been some hope restored for businesses, the case of the coronavirus is still taking its toll on the globe.

In the UK, there are specialist dedicated lines for individuals to call medical professionals if they are experiencing coronavirus symptoms.

Travel restrictions and cuts in flights have cut fuel usage, which is one of the reasons that analysts have explained the jump in oil prices over the last few days.

Two of China’s biggest oil refiners have already said that they are planning to cut processing and production by around 940,000 barrels per day following a slump in consumption.

Many businesses have also ceased production temporarily in China, Singapore and Korea to stop the further contamination of the work place.

Yesterday, the US Energy Information Administration cut its global oil demand growth forecast for this year by 310,000 barrels per day following higher cases of the coronavirus.

Looking at supply issues, OPEC have said that they are recommending a further cut of 600,000 barrels per day last week in order to stem the oil price fall.

Official data is expected to be released this afternoon at 15:30BST, and it will be really seen as to how the market has reacted to the ongoing coronavirus surge.