The impact of the coronavirus has touched the value of oil, of which China is the largest importer. On April North Sea oil futures Brent price fell by 0.28% and At $57.16 per barrel. The price of WTI fell by 0.1% to $52.27. per barrel.
According to the latest information, more than 70,500 people in More than 70,500 people have been infected with the new infection in China, and 1,770 people have not survived and about 10,800 have recovered. The coronavirus situation is having an impact on both the economy in general and Chinese demand for oil in particular. A reduction in China's oil purchases will have a significant impact on prices, so traders are keeping a close eye on the situation.
This week market analysts will study the February business activity statistics for the Asian region, to gauge the extent of the coronavirus' impact. Investors are also expecting decisions from the OPEC+ decisions to cut oil production to offset falling interest in that resource by Chinese partners.
The International Energy Agency estimates that oil demand could decline by 435,000 bpd in the first 3 months of 2020 compared to the same period in 2019 because of the virus. If this happens, it would be the first quarterly decline since 2009.
Sources: investing.com, reuters.com