Coronavirus causes 8% fall in oil price as fear over shutdown looms

Coronavirus causes 8% fall in oil price as fear over shutdown looms

- An 8% fall in oil prices has been attributed to the coronavirus, which has affected people and economies all over the world

- Some equities, however, registered gains despite the fall, which has been described as the worst since 2002

- JP Morgan, an investment firm, says the global gross domestic product (GDP) could contract at a 10.5% annualised rate in the first half of the year

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Oil prices took an 8% dive on Monday as world shares fell and fears mounted over a possible global shutdown.

However, some equities recorded gains even though the current fall is on record as the lowest since 2002.

Australian equities reportedly posted gains as the government launched a support programme and Wall Street recorded marginally positive results.

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Briefly.co.za understands that Brent slumped to $22.5 a barrel, leaving it down 65% for the year and hammering petro currencies such as Russia’s Rouble, Mexico’s Peso and the Indonesian Rupiah by as much as 2%.

Reuters.com reports that the Euro lost about 0.7% of its value, leaving it at $1.1050 and sterling at went as low as $1.2350 after Britain had become the first major economy to have its credit rating cut because of the coronavirus on Friday.

According to JP Morgan, an investment firm, the global GDP is likely to contract at a 10.5% annualised rate in the first half of the year.

READ ALSO: Explainer: R1 billion Oppenheimer fund to start helping SA businesses

In other news, the Rand Refinery Limited, located in South Africa, is on record as Africa’s only refiner of gold and one of the oldest in the world.

The global spread of the coronavirus has, however, negatively affected operations at the refinery, causing it to operate at a limited capacity.

The limit in operations has become necessary as it attempts to curb the spread of the virus in the wake of a national lockdown.

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Source: Briefly.co.za

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