Goldman Says Oil Could Drop $3 If Virus Plays Out Like SARS
- Global oil demand seen falling by 260k b/d; jet fuel hit most
- More new coronavirus cases reported; financial markets jittery
This article is for subscribers only.
Oil markets are likely to take a hit from China’s deadly coronavirus, with aviation fuel suffering the most, if the SARS epidemic in 2003 is any guide, according to Goldman Sachs Group Inc.
The respiratory virus that originated in Wuhan could result in global demand falling by 260,000 barrels a day in 2020, with jet fuel accounting for around two-thirds of the loss, Goldman said in a note. That would probably lead to a $2.90 a barrel drop in oil prices. The bank’s projections translate the estimated SARS demand impact into 2020 volumes.