2020.01.2709:19:00UTC+00Oil Prices Extend Slide As China Virus Spreads

Oil prices fell more than 3 percent on Monday to hit multi-month lows amid rising concerns about the outlook for energy demand and excess supply in the market.

Benchmark Brent crude tumbled 3.1 percent to $58.02 per barrel, dropping below $60 for the first time in nearly three months, on concerns that the rapid spread of the China coronavirus outbreak internationally will cause a significant reduction in oil demand.

U.S. crude futures were down as much as 3.4 percent at $52.34 despite Saudi Arabia saying it believes the crisis so far will have a "very limited impact" on consumption.

The death toll from China's new coronavirus grew to 80 Sunday, with more than 2,700 people infected globally.

China's National Health Commission on Sunday said the new coronavirus is contagious even in its incubation period, which lasts up to 14 days, and that the virus' ability to spread is getting stronger.

Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman Al-Saud said today the kingdom was closely monitoring developments in global oil markets resulting from "gloomy expectations" over the impact of the new coronavirus on the Chinese and global economy and oil market fundamentals.

He expressed confidence that the new virus would be contained. Markets are being "primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand," he said.