A the fear of the deadly corona virus heightened, the price of the oil fell drastically.
Brent crude was down 28 cents, or 0.5%, at $59.03 a barrel by 0332 GMT, while U.S. crude was also off by 28 cents, or 0.5%, at $53.60 a barrel.
China, which is the world’s largest importer of crude oil, has paralysed after new cases of virus rose.
On Friday South Korean authorities confirmed 52 new coronavirus infections, Yonhap reported. The streets of Daegu, the country’s fourth-largest city, were deserted on Thursday after dozens of people there went down with the pathogen in what authorities described as a “super-spreading” event.
“I think there is a lot of reason for caution right now, as the impact of coronavirus on demand is still unclear,” Stratfor oil analyst Greg Priddy said by email.
“If it begins to look like the impact will be modest, that could affect Russia’s decision at the March 5-6 OPEC+ meeting on whether they are willing to endorse a further cut,” he added.
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