Fear of the spread of dreaded coronavirus causes oil prices to fall

Fear of the spread of dreaded coronavirus causes oil prices to fall

- The continuous spread of the coronavirus has led to global fears among investors and led to a slump in oil prices

- On Monday, February 24, 2020, oil prices reduced by over 2% as investors agitated over a possible reduction in demand

- A senior market analyst, Edward Moya, has argued that oil prices are likely to remain vulnerable as the coronavirus became a global pandemic.

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Oil prices have fallen as concerns about the global spread of the coronavirus causes anxiety among investors.

Briefly.co.za understands that oil prices fell over 2% on Monday, 24 February, as the spread of the virus left investors worried about a potential fall in demand.

With new cases recorded in Iran, Italy and South Korea, Brent crude reportedly fell by $1.42, or 2.4%, to $57.08 a barrel by 0552 GMT; U.S. crude also fell by $1.26, or 2.4%, to $52.12.

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Per a reuters.com report, Edward Moya, a senior market analyst at OANDA, noted that “demand destruction for crude is likely to intensify as travel restrictions will likely increase as the coronavirus outbreak becomes a global threat and not just contained to China.”

He added that oil prices are likely to remain vulnerable as the coronavirus became a global pandemic.

Local Chinese officials revealed on Monday, February 24, 2020, that four provinces, Yunnan, Guangdong, Shanxi and Guizhou had lowered their virus emergency response measures.

China’s president, Xi Jinping earlier indicated that the world’s largest energy consumer will adjust policy to help cushion the blow to the economy from the virus outbreak.

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Source: Briefly.co.za

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