VIEWPOINT: Coronavirus news to remain key driver of oil prices in coming days - Nordea Bank
MOSCOW. Jan 31 (Interfax) - Oil prices on Friday could remain in the $59-$60/bbl range on the back of improving sentiment on international markets, though news on the coronavirus will most likely remain the key driver of oil prices in the coming days, Nordea Bank wrote in an analytical note.
Oil prices recovered moderately during morning trading on Friday following the statement by the WHO on the situation in China. Brent contracts traded close to $59/bbl, WTI -- $53/bbl. The WHO on Thursday said that although the situation in China is critical for the whole world, strict measures in terms of limiting trade turnover and travel are not necessary under the current conditions.
"We reiterate that the oil market reacted negatively to the events of the past few days on the back of the situation in China heightening the concerns of market players in regards to the demand for energy products. As a result, oil prices have lost around 9% over the past two weeks. However, following the statement by the WHO, these concerns have somewhat subsided, and oil prices on Friday could remain in the $59-$60/bbl range. News on the coronavirus will most likely remain the key driver of oil prices in the coming days," the bank's analysts said.
*** This article contains the opinion of investment or banking professionals obtained by Interfax. This opinion is provided for informational purposes only and is not a recommendation to buy/sell shares or to make any commercial or other decisions. Interfax does not accept any responsibility for the content of the article or any consequences resulting from its use.