Wednesday, February 5, 2020

Oil industry, already desperate for customers, hit by #coronavirus

China’s oil demand amid the coronavirus outbreak is likely inflicting the worst oil demand shock to markets since the financial crisis of 2008-2009, with Chinese demand plunging by 20 percent compared to the typical demand for the season, sources with inside knowledge of the Chinese industry told Bloomberg.

Oil price already too low for producers, now, a new threat. Expect more money-printing and bank bailouts. Oil industry is made up of steel and cement. If these assets run under capacity, something has to give.