Oil extends losses below $50 as virus concerns grip market

Oil extended its sharp decline below $50 a barrel as traders weigh the impact on global demand from the spread of coronavirus, which has probably cut China’s oil consumption by 20%.

Futures in New York were down 0.7%, after plunging 2.8% Monday in a continuation of oil’s worst start to a year since 1991. Oil demand in the world’s biggest importer dropped by around 3 million barrels a day, according to people with inside knowledge of China’s energy industry.

The outbreak threatens what could be the largest demand shock since the global financial crisis.