Petroleum prices fell on Wednesday as worries about the impact of the coronavirus outbreak on demand and a larger-than-expected build in U.S. inventory weighed on prices. Some of the losses were offset by talk that the Organization of the Petroleum Exporting Countries could extend oil output cuts.
Mid-morning Wednesday, Brent crude fell six cents to $59.45 per barrel. U.S. West Texas Intermediate crude fell 46 cents, or 0.9%, to $53.04 per barrel.
On Wednesday the U.S. Energy Information Administration declared stockpiles for the week ending Jan. 24 rose 3.5 million barrels. Analysts had been expecting a build of 1.4 million barrels.
Financial markets hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China.
OPEC wants to extend oil production cuts until at least June, from March, and could deepen the reductions should demand for oil in China be significantly reduced by the spread of the virus.
OPEC also says the cartel and its allies, including Russia, have been trying to stabilize prices amid questions over the global demand outlook and rising supplies, particularly out of the United States.
In the United States, crude oil inventories fell by 4.3 million barrels last week, data from the American Petroleum Institute showed on Tuesday, compared with analyst expectations of a gain of 482,000 barrels.
