Oil Slide Reaches $50 a Barrel After Virus Curbs China Demand
- Chinese oil demand said to plunge 20% after virus lockdowns
- WTI, Brent time-spreads weaken with demand worsening
Photographer: Ali Mohammadi/Bloomberg
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Oil extended the worst start to a year since 1991 after China’s oil consumption was said to plunge by 20% amid efforts to control the spread of coronavirus.
Futures in New York sank to the lowest levels in a year on Monday as oil demand in the world’s biggest importer dropped by around 3 million barrels a day, according to people with inside knowledge of the country’s energy industry. West Texas Intermediate and Brent forward curves weakened sharply -- with Brent flipping to contango for the first time since July -- further signaling slack demand for crude.