# Fueled by concerns over the ‘China virus,’ oil markets tumble - FreightWaves

> Oil prices plunged on January 22 as concern over coronavirus spread weighed on the market. Goldman Sachs estimated the outbreak could cut global oil demand by 260,000 barrels per day, mainly through lower jet fuel use.

- Date: 2020-01-22 · published 2020-01-22T12:00:00.000Z
- Category: disease · region China · magnitude medium
- Page: https://feedsoft.ai/events/12373-fueled-by-concerns-over-the-china-virus-oil-markets-tumble-freightwaves
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

A demand shock from the outbreak adds to an already oversupplied market, pressuring crude and distillate prices. Diesel's relative resilience limits the downside for fuel costs.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-01-27 | 5 | -9.0% | -2.9 | Oil plunged on Jan 22 on virus concerns, with Goldman estimating a 260k b/d demand hit mainly in jet fuel, contributing to the 5-day decline. |
| WTI | 2020-01-27 | 5 | -9.3% | -2.8 | Oil plunged Jan 22 on virus concerns, with Goldman estimating a 260k b/d demand loss, contributing to the 5-day drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-01-27 | [Oil drops below $60 as China virus drives demand concern \| Fox Business](https://feedsoft.ai/events/54975-oil-drops-below-60-as-china-virus-drives-demand-concern-fox-business.md) | -4.7% | -5.1% |
| WTI | 2020-01-23 | [Oil falls 3% as specter of China virus threatens fuel demand](https://feedsoft.ai/events/12377-oil-falls-3-as-specter-of-china-virus-threatens-fuel-demand.md) | -6.1% | -5.3% |
| WTI | 2021-11-26 | [OIL FUTURES: Crude futures plunge by more than 10% on new COVID-19 variant concerns](https://feedsoft.ai/events/4771-oil-futures-crude-futures-plunge-by-more-than-10-on-new-covid-19-variant.md) | -15.0% | -5.7% |
| WTI | 2020-02-04 | [Oil extends decline as virus hits China demand \| Daily FT](https://feedsoft.ai/events/7410-oil-extends-decline-as-virus-hits-china-demand-daily-ft.md) | -1.0% | -5.7% |
| WTI | 2021-12-01 | [Oil turns lower as Covid variant is confirmed in the U.S.](https://feedsoft.ai/events/6815-oil-turns-lower-as-covid-variant-is-confirmed-in-the-u-s.md) | +8.8% | +15.8% |
| BRENT | 2020-01-27 | [Oil drops below $60 as China virus drives demand concern \| Fox Business](https://feedsoft.ai/events/54975-oil-drops-below-60-as-china-virus-drives-demand-concern-fox-business.md) | -3.4% | -2.4% |
| BRENT | 2020-01-23 | [Oil falls 3% as specter of China virus threatens fuel demand](https://feedsoft.ai/events/12377-oil-falls-3-as-specter-of-china-virus-threatens-fuel-demand.md) | -4.8% | -5.2% |
| BRENT | 2021-11-26 | [OIL FUTURES: Crude futures plunge by more than 10% on new COVID-19 variant concerns](https://feedsoft.ai/events/4771-oil-futures-crude-futures-plunge-by-more-than-10-on-new-covid-19-variant.md) | -14.7% | -6.8% |

## Sources

- freightwaves.com: https://www.freightwaves.com/news/fueled-by-concerns-over-the-china-virus-oil-markets-tumble

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.