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Oil Prices Tumble as China Virus May Affect Fuel Demand

Oil rates went deeply down on Thursday, touching their lowest level in 7 latter weeks, losing more than 1 percent amid fears that the spread of the new pneumonia from China could reduce oil products demand.

oil rates dipPhoto: Flickr

Brent futures with delivery in March eased by 1.03 percent, to $62,56 per barrel, while U.S. WTI light crude lost 1.32 percent, to $56.00 per barrel at 0830 GMT.

The death toll from pneumonia caused by the new coronavirus in China rose to 17 on Thursday with nearly 600 confirmed cases.

The threat of a global pandemic awakened echo from an outbreak of severe acute respiratory syndrome – the so-called SARS, registered almost 20 years ago, which  also began in China, hurting economic growth and triggering a drop in supply.

Meantime, according to the latest API report, the U.S. inventories grew by 1.6 million barrels last week, which ended on January, 17, falling short of markets expectations. 

Source: Reuters