Oil prices rose Monday, extending a recent stretch of turbulence as traders grappled with the economic fallout of the coronavirus.
U.S. crude futures rose 2% to $45.65 a barrel, stabilizing somewhat after dropping Friday to their lowest level since December 2018 and ending last week 32% below a peak hit in early January. Monday’s gains came with U.S. stocks also recovering in volatile trading following their worst week since the financial crisis.
Brent crude, the global gauge of oil prices, advanced 1.5% to $50.44 a barrel on the Intercontinental Exchange.
The swings came after a torrent of news tied to the deadly coronavirus, which has disrupted global supply chains and dented oil demand. The global death toll topped 3,000 on Monday, with new cases jumping and Indonesia, Scotland and the Dominican Republic saying they are treating their first patients.
The economic toll in China has been particularly bearish for commodities, which count the nation as by far the world’s largest source of demand. Downbeat economic data released Friday for February were the latest suggesting growth stalled last month with the virus pausing economic activity around the Lunar New Year holiday.
Still, some analysts are hopeful stimulus measures being considered by central banks can help the global economy rebound moving forward and boost fuel demand. More broadly, some have suggested that the economic data points from last month have been too skewed by the virus.
Pumpjacks operating at the Kern River Oil Field, in Bakersfield, Calif. U.S. oil prices ended last week 32% below a peak hit in early January.
Photo: Jae C. Hong/Associated Press“At this point, it thus looks increasingly likely that the entire month of February will be an economic write-off,” JPMorgan Chase & Co. analysts said in a note.
Oil-market participants are also looking ahead to a meeting of the Organization of the Petroleum Exporting Countries slated for later in the week. The cartel is expected to deepen existing output cuts to help crude markets stabilize, with key OPEC nations like Saudi Arabia needing higher prices to sustain their economies.
Analysts are waiting to see the extent of the output reductions and how Russia, an OPEC ally in past cuts, chooses to respond to the virus.
Elsewhere in commodities Monday, natural-gas futures also pared a sliver of their recent slide, rallying 3.5% to $1.743 a million British thermal units after closing at a nearly four-year low on oversupply worries Friday.
Most-active copper futures rebounded 1.1% to $2.5670 a pound, an encouraging sign as the industrial metal is sensitive to global growth and Chinese demand because of its uses in construction and manufacturing.
Most-active gold futures rose 2.2% to $1,601.70 a troy ounce, rebounding from their worst day since 2013 with investors favoring safe-haven assets. Prices fell sharply on Friday after closing at a seven-year high early last week. Traders attributed the reversal to the need for investors to generate cash by selling gold to make up for losses suffered in stocks and other riskier assets.
Write to Amrith Ramkumar at amrith.ramkumar@wsj.com
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Oil Rebounds as Volatility Continues - The Wall Street Journal
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