SINGAPORE: Oil extended declines from the lowest close in seven weeks on speculation China’s coronavirus outbreak may dent demand as the market tackles a glut of global crude supplies.
The International Energy Agency says the world is “awash with oil,” while Goldman predicts the virus may crimp global demand by 260,000 barrels a day this year, with jet fuel accounting for around two-thirds of the loss, if the SARS epidemic in 2003 is any guide. West Texas Intermediate futures for March delivery fell 99 cents to US$55.75 a barrel on the New York Mercantile Exchange as of 7.27am in London after dropping as much as 2.1% earlier.China banned travel from Wuhan, a city of 11 million, in efforts to stop the spread of the new SARS-like virus that has claimed at least 17 lives so far and infected hundreds.