The coronavirus outbreak is proving a “true black swan” for oil markets, Warren Pies of Ned Davis Research told CNBC. Chinese demand for oil is down by two to three million barrels per day (mbpd) – roughly a quarter below normal levels. That is leaving the energy industry facing the prospect of no overall demand growth for the calendar year.
Trading above $54 per barrel at the start of this week, Brent crude is down almost 18% since 1 January. America’s benchmark oil future, West Texas Intermediate, fell below the $50 per barrel mark on Monday, a 13-month low.
Opec has been sidelined
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