Oil Prices Decline As Coronavirus Expands

By Alex Mills   February 13, 2020 Worldwide crude oil prices have been soft during the past five years because of weak demand and an oversupply. Recent news of the coronavirus in China, the world’s largest oil importer, has reduced demand further as its economy struggles to counter the downturn. The U.S. Energy Information Administration (EIA) on Thursday revised its forecast for global liquid fuels down 378,000 barrels per day from its forecast in January. EIA believes demand will still increase by 1 million barrels per day this year averaging 101.7 million barrels per day globally. “The difference between the forecasts is driven by a combination of lower-than-expected heating fuel consumption caused by the Northern Hemisphere’s warmer-than-expected winter, an expected slowing of economic growth in general, and the particular economic effects of the 2019 novel coronavirus outbreak,” EIA said. The International Energy Agency based in Paris also predicts a decline in its demand growth by 435,000 barrels per day.....  
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