Goldman Sachs Warns that Due to the Chinese Coronavirus, Oil May Fall in Price by 3 Dollars
OREANDA-NEWS. American investment bank Goldman Sachs warns that if the new coronavirus spreads to an epidemic in China, energy demand can decline. According to experts, this will affect world oil prices, dropping them by about 3 US dollars.
The bank drew analogies with the epidemic of severe acute respiratory syndrome (SARS) in 2002–2003, which also began in China and claimed the lives of about 800 people around the world. “Translating the estimated SARS demand impact into 2020 volumes points to a potential 260,000 barrels per day negative shock to global oil demand on average,” Goldman Sachs analysts note. They add that this volume includes 170 thousand barrels due to a possible reduction in demand for jet fuel due to a decrease in tourist activity during epidemics.