Forex Marketz Daily Forex News – Fully Markets Update
Crude Oil futures have now fallen for six straight days. Oil traders are worried about the ongoing economic impact of the deadly coronavirus out of China.
There are worries that global growth will be slowed as well as the demand for the black gold from the world’s second largest economy.
To date, the viral outbreak has killed 106 people and there are 1,515 people reported infected around the world.
China says that the virus is getting stronger, spreading faster and having an impact on travel and the economy. Nations are recalling works and official staff as fears grow that the coronavirus will become a full blown global pandemic.
Oil losses extended into today’s Asian trade session. As of 1:15 am GMT, the international benchmark, Brent crude was down 15 cents or 0.3 percent to trade at $59.17 per barrel. This contract hit a three month low, yesterday, at $58.50 per barrel.
U.S. West Texas Intermediate (WTI) futures contract was also under pressure. This contract was down 12 cents to trade at $53.02 per barrel. This contract hit its lowest price point since early October yesterday. This was at $52.13 per barrel.
Crude Oil Traders Worry about Global Demand and Travel Restrictions in and out of China
Nations are starting to restrict non-essential travel to China as the outbreak gains strength and spreads.
The United States is warning its citizens against travel to China. This warning includes other countries. The U.S. State Department has placed advisories as the death is now above 100 people. This has left millions of Chinese stranded during the Lunar New Year holiday.
Oil traders are worried that travel restrictions will negatively impact the demand for gasoline, oil and jet fuel. This will put downward pressure on the global economy as well as dampen the demand for oil from China.
