The Strategist

Bloomberg: China's oil demand drops 20% due to coronavirus

02/03/2020 - 09:50

Demand for oil in China fell by about 3 million barrels per day, or 20% of total consumption, Bloomberg reports citing sources. This happened against the backdrop of the Chinese coronavirus outbreak.

Department of Energy and Climate Change via flickr
Department of Energy and Climate Change via flickr
China is the largest importer of oil; it consumes about 14 million barrels per day. This is enough to satisfy the needs of France, Germany, Italy, Spain, Great Britain, Japan and South Korea. The agency notes that the new virus could be the most powerful shock to the oil markets since the global financial crisis of 2008-2009.

Stock exchanges in China closed with a fall of 7-8% amid concerns over the coronavirus. The Shanghai Composite Shanghai Stock Exchange Index fell 7.7% to 2746.61 points, the Shenzhen Composite Index - 8.4%, to 1,609 points. Bloomberg described the situation at the auction as follows: "everything that investors were afraid of, and even more."