Crude oil market has come under considerable pressure as demand concerns have come to the fore following the outbreak of Wuhan coronavirus in the world’s largest import market, China. Notwithstanding output cuts, the world market is already seen adequately supplied in the first half of the year as a result of which prices have been slipping from their recent highs.
And, now with parts of China being shut down and travel activity substantially reduced because of halting public life, demand for energy is coming down. Worse, the disease is reportedly spreading to other countries as well.
On Monday, Brent crude declined below the psychological $60 a barrel towards $58.50, a multi-month low. WTI followed suit at $52 a barrel.
