The Coronavirus now constitutes an international threat, which could affect the oil market.
Oilman Sachs Investment Bank study finds that oil demand could drop by 260,000 barrels a day in the coming days, which should translate into a decline of three dollars per barrel due to risks associated with the spread of the epidemic.
Indeed, the banking institution anticipates a decrease in the flow of travel to and from Chinese territory, which will cause a drop in the consumption of kerosene for aircraft. The risk of infection is increasingly discouraging travelers from flying, according to the Chinese press.
With the appearance of the SARS epidemic in 2003, Asian airlines had recorded an 8% drop in their annual traffic. However, Goldman Sachs tempers by indicating that the effect of the epidemic on oil prices will probably be limited to the regional level.
Since the outbreak of the epidemic, hundreds of people have been infected and health authorities around the world are on the alert for other outbreaks.
- Agency Report