Brent crude oil continues to decline. By the end of trading session on Monday the price of one barrel of oil lost 1.1%, closing the day at $ 58.20. Market participants believe that in the short-term dynamics of Brent will remain the same amid lingering fears about the spread of coronavirus infection in the world, as well as its negative impact on demand from China.
Recall that China keeps its status as the world's largest consumer of industrial raw materials. Wuhan City, where he started to spread the coronavirus continues quarantined, established within the framework of a package of measures aimed at curbing the spread of the virus, which, according to government data, infected more than 5,000 people, and at least 106 have died. Also Monday, it was announced that the first deaths from a viral infection in Beijing and Hainan. Users of social networks and health experts have criticized the local government for a lack of preparedness for the threat of the virus, which, according to scientists at the end of last year began to spread from the market, where they sell the meat of wild animals.
Based on the impact on demand, which had SARS in 2003, Goldman Sachs last week predicted a decline of the daily oil consumption by 260 th. Barrels, including a reduction in jet fuel demand by 170 thousand. Barrels per day. At this time, the consequences will be more significant, as the investment bank's forecast does not take into account the increase of the middle class in China, where every day is canceled more flights. Taking this into account, the collapse in demand is quite capable of providing a collapse of quotations Brent below $ 55 per barrel.
SellStop the TP 58,30 brent SL 54,50 58,90
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