The price of oil has gone down by four percent on Thursday as traders are concerned over the spread of the novel coronavirus around the globe and the impact on demand particularly from China, the Agence France Presse reported.
Brent oil for April delivery is down by almost 4.2 percent to $51.20 per barrel, while New York’s WTI crude for the same month is also down by nearly 5.0 percent to $46.31.
CMC Markets analyst Michael Hewson explained that “Concerns that the virus will prompt a global slowdown, weaker consumer confidence and reduced travel has raised concerns about lower demand, weighing on prices.”
Traders are increasingly concerned over the economic impact of the virus outbreak that has affected the airline industry, shipping, industry, and tourism, among others.
The COVID-19 or coronavirus disease is caused by a member of the coronavirus family that is a close cousin to the SARS and MERS viruses that have caused outbreaks in the past.
The number of new coronavirus cases in the world rose to 82,560, including 2,813 deaths, across 50 countries and territories as of posting.
The spread has reached the Netherlands, Brazil, Denmark, Estonia, Greece, Georgia, Norway, and Pakistan.
It is believed that the virus originated in a market selling wildlife in Wuhan City, Hubei province in China late last year.
