SHANGHAI, Feb 24 ― China's energy futures tumbled over 4 per cent to trade at more than one-week lows in early deals today, as a jump in coronavirus cases and deaths outside China raised fears about the outlook for global growth and oil demand.
Crude oil on the Shanghai Futures Exchange fell as much as 4.7 per cent and was last down 4.4 per cent. The fuel oil contract on the Shanghai exchange's International Energy Exchange slid 4.9 per cent early on before paring some losses to trade 4 per cent down.
The losses came as global oil prices slumped nearly 3 per cent towards a one-week low today as investors worried the rapid spread of the coronavirus in several countries outside China could severely hurt demand.
“The Shanghai contracts fell tracking losses in global oil prices,” said Xi Jiarui, an analyst with Chinese commodities consultancy JLC.
“Confidence in China's oil demand may have returned, but the number of new coronavirus cases in South Korea and Japan has once again raised market worries about oil demand.”
The coronavirus has already claimed over 2,400 lives in China, but the sudden spike in infections in South Korea, Italy and Iran has raised alarm the outbreak could grow into a pandemic and tip the global economy into recession.
Brent crude declined 2.8 per cent to US$56.86 (RM240) a barrel, while US West Texas Intermediate (WTI) crude fell 2.6 per cent to US$51.97 a barrel. ― Reuters
