Oil snapped the longest run of daily gains this year as investors assessed the demand hit from the coronavirus and stimulus measures being rolled out to cushion its economic impact.
Markets are overconfident in expecting a v-shaped recovery and oil prices are likely to remain weak during the first half of the year, according to Citigroup Inc. China has pledged a raft of fiscal stimulus measures, while Singapore plans to deliver a strong budget to counter the slowdown on tourism and trade.
Brent for April settlement lost 48 cents, or 0.8%, to $57.19 on the ICE Futures Europe exchange as of 10:11 a.m. in Singapore after closing 0.6% higher on Monday. The global benchmark crude trade at a premium of $5.11 to West Texas Intermediate.
WTI futures traded 24 cents lower from Friday’s close at $51.81 a barrel. There was no settlement Monday due to the Presidents Day holiday in the U.S.
Source : Bloomberg