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Newsbreak: Oil’s Brent Benchmark Breaks Key $55 Support as Virus Drains Demand

Published 03/02/2020, 18:24
Updated 03/02/2020, 18:34
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Investing.com: Crude oil’s top benchmark Brent broke the key $55 per barrel support on Monday as China’s coronavirus crisis entered its second month, threatening to drain oil demand further in the world’s largest consumer.

By 12:20 PM ET (17:20 GMT), Brent was at $54.80 per barrel, tumbling $1.81, or 3.2%, to $54.81.

* Chinese oil demand has dropped by about three million barrels a day, or 20% of total consumption, as the coronavirus squeezes the economy, according to people with inside knowledge of the country’s energy industry, Bloomberg reported.

* As many as 18 independent oil refineries in China, out of an operating 40, may be cutting runs or shutting completely as the coronavirus reduces demand for fuel, according to traders familiar with operations at the plants known as teapots, Bloomberg added.

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