SINGAPORE: Oil is heading for the longest run of weekly losses since May on fears China’s coronavirus outbreak may dent demand amid plentiful global supplies, even as US crude inventories unexpectedly declined. S&P Global Ratings warned that the virus could hit Chinese consumption following a prediction from Goldman Sachs Group Inc. earlier in the week that oil demand may drop. While the International Energy Agency says the world is "awash with oil,” a surprise 405,000-barrel decrease in U.S. crude stockpiles offered some relief. Prices are poised for a third weekly drop after closing at the lowest level since Nov. 29 on Thursday. Goldman said the virus may crimp global demand by 260,000 barrels a day this year, specifically jet fuel, if the SARS epidemic in 2003 is any guide.

Source: The Star January 24, 2020 04:07 UTC