WTI crude oil prices have made a surprising rebound and are climbing higher early on Friday, a day after the WHO declared a global health emergency over the coronavirus outbreak but stopped short of enforcing travel restrictions. At the time of writing, WTI crude oil is trading at around $53.19 per barrel.
Until Thursday, crude oil had lost around 4% of its value this week over rising worries that the spread of the virus would slow down economic growth. However, things took a turn for the better in oil markets after the WHO stated that travel and trade restrictions did not seem necessary at the moment.
The coronavirus outbreak originated in China and has since spread to over 18 countries around the world. Although crude oil prices have turned bullish for now, analysts expect this to be a temporary condition as downside risks still remain as long as more cases keep getting reported. So far, over 200 people have lost their lives due to the coronavirus.
ANZ Bank has estimated a decline in crude oil demand by as much as 500k barrels per day on account of travel advisories and lockdown measures being enforced by China in a bid to contain the spread of the virus.