Antihype on money: Chinavirus Threatens Disaster for Oil Producers
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Main page Opinion, China, Stocks, Oil
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4 February
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This article is brought to you by a Russian Telegram channel "Antihype on money," an analytical channel about all economic hype trends and their triggers.

What happened: Brent crude oil has already lost more than 20% amid the January peaks. One of the reasons is the impact of coronavirus outbreaks on raw material consumption in China. The spread of the virus puts pressure on quotes and threatens stocks of Russian oil producers, dramatically lowering the potential of brands such as Rosneft and Lukoil. Citigroup expects that against the backdrop of the epidemic, the oil will trade at around $54 with the prospect of recovery in the Q4 period.

Antihype on money: Chinavirus Threatens Disaster for Oil Producers
https://exante.eu/trade/

What really happened: Markets quickly digest the news of such threats, often turning around for growth earlier than official reports cease to be intimidating. Quotes of Russian companies are supported by the weakening ruble. Its decline from last week helped to return Rosneft shares to growth. Investors should pay attention to verbal interventions from OPEC. In particular, a possible reduction in oil production by another 500,000 barrels per day. Reduced production once again can act as a market balancer and help avoid revenue drawdowns due to a collapse in prices.

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