Oil sinks to 3-month lows as coronavirus raises demand fears
Crude futures dropped 2 per cent to three-month lows on Monday as the death toll from China’s coronavirus grew, curtailing travel and fueling expectations of slowing oil demand.
Brent crude settled at $59.32 a barrel, losing $1.37, or 2.3 per cent, its lowest since Oct. 21. United States (US) crude settled at $53.14 a barrel, was down $1.05, or 1.9 per cent, its lowest since October 2.
Global stock exchanges, which oil prices tend to follow, also sank as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, such as the Japanese yen and Treasury notes.
