Economics

Second Wave Virus Concerns Loom Large Over Crude Oil Market

Beijing shuts schools and Florida cases hit highest level
Technical indicators suggest crude may be due for a retreat

“Oil demand is less weak than it was before, mainly driven by China,” says Fatih Birol, executive director at the International Energy Agency.Source: Bloomberg

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By Hailey Waller

June 15, 2020 at 10:23 PM UTC

Updated on

June 16, 2020 at 9:25 PM UTC

This article is for subscribers only.

Fears of a resurgence of coronavirus in China, the world’s biggest crude importer, are casting a shadow over the oil market once more.

On Tuesday, Beijing said it was shutting down schools because of the risk of a new wave of infections. A renewed outbreak would jeopardize the recovery in oil prices over the last two months -- spurred by record output cuts and signs that demand is slowly coming back as lockdowns are lifted. The news capped an early rally on economic optimism fueled by a record jump in U.S. retail sales.