Crude oil prices drifted lower on Monday amid continued concerns about the outlook for energy demand, especially from China, amid the rapid spread of coronavirus and worries about its impact on the global economy.
West Texas Intermediate crude oil futures for March dropped to a low of $49.92 and eventually ended down $1.45, or about 2.8%, at $50.11 a barrel, the lowest finish in more than a year.
Brent crude oil futures declined $2.21, or nearly 4%, to $54.41 a barrel, the lowest in about 13 months.
On Friday, WTI crude oil futures for March ended down $0.58, or about 1.1%, at $51.56 a barrel.
According to a Bloomberg report, oil demand in China has dropped by about three million barrels a day, or 20% of total consumption amid the virus outbreak.
Several airlines have cancelled flights to China and supply chains across the world's second-largest economy have also been disrupted, prompting its biggest refiner Sinopec to cut output.
Economic data from China added to the gloom as factory activity expanded at its slowest pace in five months in January and industrial firms posted their first annual decline in profits in four years in 2019.
In a bid to support the world's second-largest economy, China's central bank unexpectedly lowered the interest rates on reverse repurchase agreements and pledged to inject $174 billion of liquidity into markets.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2151078/
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