Oil sinks 4% on demand concerns as coronavirus spreads - Reuters

Oil sinks 4% on demand concerns as coronavirus spreads - Reuters:

Oil prices slumped by nearly 4% on Monday as the rapid spread of the coronavirus in countries outside China added to investor concerns over the effect on demand for crude.

Global equities also extended losses as worries about the impact of the virus grew, with the number of cases jumping in Iran, Italy and South Korea.

Brent crude LCOc1 futures fell $2.20, or 3.8%, to settle at $56.30 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.95, or 3.7%, to settle at $51.43 a barrel.

“The reports of the coronavirus spreading is raising more fears of demand destruction,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “When we saw the big move down in the stock market, oil traders were selling first and asking questions later.”