# Oil extends decline as virus hits China demand | Daily FT

> Oil prices extended losses on Monday as worries about lower demand in China spread after the coronavirus outbreak. Brent was at $56.14 a barrel and WTI at $51.32, after both fell in January, with Brent losing nearly 12% that month. Chinese airports closed and factory activity stalled, while the central bank injected liquidity to support the economy.

- Date: 2020-02-04 · published 2020-02-04T12:00:00.000Z
- Category: disease · region China · magnitude medium
- Page: https://feedsoft.ai/events/7410-oil-extends-decline-as-virus-hits-china-demand-daily-ft
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Lower Chinese demand and disrupted supply chains keep the outlook bearish for crude and diesel, with Chinese stimulus offering only a short-term floor. Lower energy prices weigh on biofuel and ethanol-linked feed costs.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-02-04 | 5 | -9.3% | -2.8 | Prices extended losses as China demand worries spread, with factory stalls and closed airports cutting consumption. |
| BRENT | 2020-02-03 | 1 | -6.5% | -4.3 | Describes oil extending losses Monday on lower Chinese demand worries, with Chinese airports and factories closed (dated Feb 4 but covers the Monday move). |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 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 | 2020-02-03 | [Oil hits 13-month lows as coronavirus cuts demand](https://feedsoft.ai/events/7406-oil-hits-13-month-lows-as-coronavirus-cuts-demand.md) | -2.4% | -9.3% |
| WTI | 2020-02-03 | [Oil Slide Reaches $50 a Barrel After Virus Curbs China Demand - Bloomberg](https://feedsoft.ai/events/7407-oil-slide-reaches-50-a-barrel-after-virus-curbs-china-demand-bloomberg.md) | -2.4% | -9.3% |
| WTI | 2020-02-04 | [Coronavirus and oil: Why crude has been hit hard](https://feedsoft.ai/events/7408-coronavirus-and-oil-why-crude-has-been-hit-hard.md) | -1.0% | -5.7% |
| 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 | 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 | 2020-02-03 | [Oil hits 13-month lows as coronavirus cuts demand](https://feedsoft.ai/events/7406-oil-hits-13-month-lows-as-coronavirus-cuts-demand.md) | -6.0% | -12.2% |

## Sources

- ft.lk: https://www.ft.lk/International/Oil-extends-decline-as-virus-hits-China-demand/49-694969

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