The global economy is taking a hit due to the rise of the coronavirus outbreak. The crude oil industry seems to have also been affected by the virus outbreak which has claimed lives of thousands already in Asia. There has been fresh news of casualties in the East-Asian countries like China.
Due to this the oil prices fell on Friday with nearly a drop of 2%. The share prices of Brent crude was down by $1.20 nearly 2% at $58.11 per barrel. Prices of US crude oil dropped by $1.02 to $52.86 per barrel and the drop in percentage was nearly the same.
The prices of the crude oil stock in the US grew up on Thursday on the back of a much less than expected rise of the stocks.
UBS oil analyst Giovanni Staunovo told that the uncertainty in the global prices is pulling the prices of the crude oil. It has also been fuelled because of the coronavirus outbreak. The Brent crude prices had fallen to below $60 per barrel on Thursday while the prices of the crude stock had gone up in the US although they fell through on Friday.
On Friday reports from China revealed that it had found 200 new people who had been tested positive for the coronavirus. The industrial output in Japan was down for the first time in 7 years due to fewer sales of its goods and services.
The oil prices are also globally down due to the strong show of the US dollar which had held its levels while the US-China rift was at its peak last year. As the price of this commodity is priced in the US dollars other countries have to buy it at increased prices.
The group of countries constituting the OPEC+ had reduced its output rates for the last few years now. Many analysts believe that the output would be further reduced by the countries now.
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