Priced for perfection, oil slides on fears coronavirus will hit demand: Kemp - Reuters:
China’s outbreak of novel coronavirus has sent oil prices sharply lower as traders reassess whether the country will be able to generate the strong economic growth needed to rebalance the market in 2020.
China and its neighbour India accounted for more than half of all incremental oil consumption between 2013 and 2018 so the economic growth of these two giant Asian economies is critical to the oil market.
Both suffered a sharp economic slowdown in late 2018 and through 2019 as a result of slumping auto sales, tightening credit conditions and, in China’s case, trade conflict with the United States.
The consequent slowdown in worldwide oil demand, coupled with continued strong increases in U.S. shale supply, sent prices tumbling during the second and third quarters of 2019 (tmsnrt.rs/2TVdAs2).
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