Crude oil demand slumps in world’ largest importer; extends loss for 4 consecutive weeks
Oil prices extended declines on Monday, dragged down by worries about lower demand in the world’s largest oil importer China following the coronavirus breakout. Brent and U.S. West Texas Intermediate (WTI) crude fell for a fourth week in a row last week after airlines cancelled flights to China. Supply chains across the world’s second largest economy have also been disrupted.
Brent crude was at $55.83 a barrel by 0047 GMT, down 79 cents, or 1.4%, after losing nearly 12% in January, the steepest monthly decline since November 2018. U.S. West Texas Intermediate (WTI) crude fell 50 cents to $51.06 a barrel, after earlier hitting a session low of $50.42. The front-month WTI price fell 15.6% in January, the biggest monthly drop since May.
China’s factory activity stalled in January as export orders fell while analysts expect a big plunge in February’s data as the virus outbreak hit demand in the country, even as the central bank planned to inject more liquidity to shore up its economy.
