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.