Oil falls below $61, heads for weekly loss on China virus concerns - Reuters

Oil falls below $61, heads for weekly loss on China virus concerns - Reuters:

Oil extended losses on Friday to trade below $61 a barrel, heading for a weekly decline as concern that the coronavirus in China may spread, curbing travel and oil demand, outweighed the impact of cuts to supply.

The virus has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend, when millions of Chinese travel.

Global benchmark Brent LCOc1 was down $1.13 to $60.91 by 1440 GMT. The contract is down over 6% this week, its third consecutive weekly drop. U.S. crude CLc1 slipped 93 cents to $54.66 and was also on course for a weekly decline.

“One should be prepared for negative surprises when it comes to Chinese demand,” said Eugen Weinberg, analyst at Commerzbank. “The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese.”