Oil Prices Drop more than 2% Brent Crude
Reaches $ 59.32 a Barrel and US Crude $ 53.14 a Barrel
28 January 2020
The crude
futures downed 2%; the minimum level in three-month on Monday as the
death toll from coronavirus in China surged. Accordingly, the travel
movement curbed and the expectations for a slowness in oil demand
increased.
The Brent crude
settlement price was identified at $59.32 a barrel, down 1.37%, or 2.3%,
and recorded its lowest level since 21 October 2019.
The US crude closed at $ 53.14 a
barrel, with decline of $ 1.05 or 1.9%, at the lowest price since 2
October 2019.
Additionally,
the global stock markets, which are usually impacted by oil prices, have
likewise dropped as investors’ anxiety is growing over an escalating
crisis. The demand for safe-haven assets, such as the Japanese yen and
treasury bonds, has witnessed a boom.
The death toll
from the coronavirus has grown to 81 and the Chinese government has
decided to extend the Lunar New Year holiday to 2nd February
2020, to keep as many people as possible at homes and prevent further
spread of the virus.