Oil prices slide over 3% on demand concerns as virus spreads

Oil prices tumbled by more than 3 per cent on Monday, as the rapid spread of a coronavirus in several countries outside China left investors concerned about a hit to demand.

Global shares also extended losses as worries about the impact of the new virus grew, with the number of infections jumping in Iran, Italy and South Korea.

Brent crude was down $2.16, or 3.7 per cent, to $56.34 barrel by 0935 GMT. US crude futures fell by $1.93, or 3.6 per cent, to $51.45.

“Oil prices will remain vulnerable here as energy traders were not pricing in the coronavirus becoming a pandemic,” said Edward Moya, senior market analyst at OANDA.