Oil prices tumbled nearly 3 per cent towards a one-week low on Monday as the rapid spread of the coronavirus in several countries outside China left investors fretting about a hit to demand.
Global shares also extended losses as concerns about the impact of the new virus grew, with the number of infections jumping in South Korea, Italy and Iran. Brent crude fell by $1.69 or 2.9 per cent to $56.81 a barrel by 0158 GMT. US crude futures fell by $1.40 or 2.6 per cent to $51.98.
“It’s pretty clear in the middle of last week that the consensus overall was that it would be a temporary economic impact and that would be at least offset by the actions of central banks,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
