Oil slides to a three-month low on coronavirus contagion jitters
Oil fell to the lowest since October as China’s deadly coronavirus crippled the world’s second-largest economy and threatened worldwide energy demand.
Futures shed 1.9% on Monday in New York. The coronavirus’s death toll climbed to at least 80 people and additional cases of infections underscored concerns that China has failed to contain the deadly virus despite its efforts to control the outbreak. China extended the Lunar New Year holiday by three days until Feb. 2, while companies in Shanghai have been asked not to start work until at least Feb. 9.
The virus is the latest upheaval for the oil market, which has been struggling with demand concerns for months. Investors are selling crude and other commodities amid a broad withdrawal from riskier assets and fears the virus will curtail fuel consumption as travel is restricted. US gasoline futures touched an 11-month low in intraday trading.
