Coronavirus vs Oil

The oil prices have fallen following a four-month slump due to fears of weak demand, driven by the Coronavirus that is slowing China’s oil demand, as ten cities (with a population of 30 million) have been quarantined off.

Since news of the Coronavirus striking, the oil prices have dropped below $60, the price of WTI Crude has dropped from $58.58 down to $53.14, -5.44 as of Monday. Brent Crude has also dropped from $65.20 down to $58.58, -6.62 as of Monday.  Coronavirus could further cut into demand by around 260,000 barrels per day, reducing oil prices to approximately $3 per barrel.

To counteract this, OPEC are managing the supply by reducing the amount produced. As of today, WTI Crude is +0.55% at $53.44 and Brent Crude is +0.73% at $59.10.