Oil Data From SARS Era Offers Clues to Impact of China Virus
- China jet fuel demand growth slumped during 2003 SARS outbreak
- Coronavirus spurred selloff in crude, jet fuel and diesel
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Oil traders reacted to the outbreak of the coronavirus in China by dumping contracts for crude, diesel and jet fuel. Data from the last Chinese epidemic offer some clues as to whether the selloff is justified.
The 2003 outbreak of Severe Acute Respiratory System, or SARS, did indeed crimp demand, according to figures provided to Bloomberg by the International Energy Agency. Consumption of jet fuel took a big hit, but use of other oil products was resilient to the disruption caused by the virus.