Less demand for oil and travel because of the corona virus worries


Oil prices were under pressure on Thursday due to concerns that oil demand could be hit by the corona virus in China and other countries. Because of the virus, for example, there could be less demand for air travel, which means that less kerosene is needed by airlines.

The price of a barrel of American oil recorded a minus of 1.6 percent on $ 55.84 on Thursday in Singapore. Brent oil dropped 1.3 percent to $ 62.38. Goldman Sachs investment bank wrote in a report that the oil demand could be undermined by the virus in the run-up to the Chinese New Year. Then hundreds of millions of Chinese travel through the country to visit relatives. In addition, there is oversupply on the oil market, which is also putting pressure on prices.

In the meantime, the Chinese authorities have closed down the metropolis of Wuhan, where the corona virus first appeared, to prevent further spread. Wuhan, with around 11 million inhabitants, is an important traffic and aviation hub in China and the rest of Asia. Several airlines have already stopped flying on Wuhan.

By: Leah Kunze

Leah Kunze just graduated MBA and is proud of it. She is interested in automotive industry and innovations. She well be glad to receive a mail to leah.kunze@economicinform.com

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