Oil prices down with coronavirus-related low demand

- Softening of quarantine measures against COVID-19 expected to increase oil demand and push crude prices higher

Crude oil prices were down on Wednesday as coronavirus-related quarantines around the world continue to keep oil consumption and global oil demand low

International benchmark Brent crude was trading at $34.61 per barrel at 0650 GMT for a 0.11% decline after it closed Tuesday at $34.65 a barrel.

American benchmark West Texas Intermediate (WTI) was at $31.88 a barrel at the same time for a 1.91% loss after it ended the previous day at $32.50 per barrel.

Due to the widespread coronavirus (COVID-19) pandemic around the world, strict quarantine measures are still in place in many countries, keeping oil consumption low while weak oil demand continues to keep downward pressure on prices.

On the supply side, oil-producing countries of the 23-member group dubbed as OPEC+ have begun lowering their collective output by 9.7 million barrels per day from May 1 until June 30.

However, it is yet unknown whether this production cut will be enough to trim the global supply glut and help mitigate the rising crude storage problem.

If quarantine measures against COVID-19 start to soften at the beginning of June, crude demand will increase to push prices higher.

By Ovunc Kutlu

Anadolu Agency

energy@aa.com.tr