Oil slumps as US bans travel from Europe over pandemic

Oil prices sank again on Thursday along with the broader market after the United States banned travel from Europe following a World Health Organization delaration that the coronavirus outbreak is now a pandemic.

Market worries were compounded by the threat of a flood of cheap supply as Saudi Arabia promised to raise oil output to a record high in its standoff with Russia.

Brent crude was trading down $1.91, or 5.3 per cent, at $33.88 by around 0339 GMT, slightly above earlier lows. The contract fell nearly 4 per cent on Thursday. US crude was down $1.74, or 5.3 per cent, at $31.24 after dropping 4 per cent in the previous session. Oil is down around 50 per cent from highs reached in January.