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Oil prices are falling due to concerns about demand with the spread of coronavirus globally

UNITED STATES (OBSERVATORY NEWS) — Oil prices fell more than 2 percent on Monday, as the rapid spread of the Coronavirus in several locations outside China caused investor concern that demand was negatively affected.

Global stocks also continued to suffer losses as concerns about the impact of the emerging virus grew, with a jump in the number of cases in Iran, Italy and South Korea.

By 0552 GMT, Brent crude fell $ 1.42, or 2.4 percent, to $ 57.08 a barrel, but it was higher than the low level of $ 56.53 it touched earlier. US crude futures fell $ 1.26, or 2.4 percent, to $ 52.12.

“Demand is likely to become more affected as travel restrictions are likely to grow as the outbreak of the Corona virus becomes a global threat and is not only contained in China,” said Edward Moyle, market analyst at Oanda.

“Oil prices will remain vulnerable as energy dealers have not taken into account that Coruna has become a pandemic.”

Oil prices received some support after local health officials in China said on Monday that four provinces had reduced emergency response measures.

Chinese President Xi Jinping said on Sunday that the world’s largest energy consumer will adjust the policy to help ease the blow the economy will receive from the virus.

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