Oil falls on coronavirus hit to demand, OPEC+ delay

• Oil fell below $57 a barrel on Tuesday, pressured by concerns over the impact on oil demand from the coronavirus outbreak in China and a lack of further action by OPEC and its allies to support the market.
• Brent crude was down $1.18 at $56.48 a barrel after rallying in the previous five sessions. U.S. West Texas Intermediate crude fell 95 cents to $51.10 per barrel.
• Forecasters including the International Energy Agency (IEA) have cut 2020 oil demand estimates because of the virus.  The IEA last week said that first-quarter oil demand is likely to fall by 435,000 barrels per day (bpd) from the same period last year in the first quarterly decline since the financial crisis in 2009.
• The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, have been considering further production cuts to tighten supply and support prices. The group, known as OPEC+, has a pact to cut oil output by 1.7 million bpd until the end of March.
• The next OPEC+ meeting in March is set to consider an advisory panel’s recommendation to lower supply by a further 600,000 bpd.

(Source: CNBC)