Brent falls below $60 for first time in 3 months, on fears over China Coronavirus

Brent crude prices continued to slide as the US market opened on Monday, deepening its losses for the sixth straight day and giving up the $60 per barrel mark for the first time in three months, on the mounting fears about the spread of the deadly virus, Coronavirus, in China and its negative impact on the Chinese economy, in addition to record production levels, especially in the US.

Brent crude fell to $58.52 a barrel (the lowest since Oct. 21), after it opened today at $60.64, and hit a day high of $60.64.

Brent futures lost 2.3% on Friday, posting the fifth straight daily loss, on concerns over China demand after the outbreak of the Coronavirus.

During the past week, oil prices lost around 7%, in the third weekly loss in a row, due to concerns about the Chinese demand and its impact on the market balance.

China revealed that the coronavirus has infected 2,682 cases, and its death toll rose to 81, with 461 of critical cases.

The Chinese government declared a state of emergency in the country, extended the Lunar New Year holiday for additional three days until Feb. 2, and ordered companies in Shanghai to postpone work until Feb. 9 at least.

The spread of the deadly virus in China intensified fears in global markets, as more travel restrictions are expected, affecting demand for oil in the world's second largest consumer.

Goldman Sachs estimated that global oil demand may fall by 260 thousand bpd, and consequently drop prices by about $3 per barrel, due to the Coronavirus outbreak in China.