Today, the market is facing risk-off sentiment, leading to a selloff in global equities and industrial commodities and energies.
WTI Crude oil prices are currently trading 2.8% down at $51.80 and Brent oil is down about 3% to trade at $56.25 a barrel. The market is worrying about the demand that has a hit from the Corona Virus outbreak, which is spreading fast outside China now.
The only real support for oil since the coronavirus broke is the threat of supply outages - either from Libya or the Trump administration’s newest sanctions aimed at the Rosneft-Venezuela pact or OPEC’s desperate attempts to reduce further supply with Russian collusion. But all seem to have a little impact as of now against the pessimism caused by Corona Virus.
On the other side, Gold prices continue to get benefit from Corona Virus risk-off theme and have jumped to $1681 an ounce today early trade, the highest level since March 2013.
Concerns about the coronavirus grew on Sunday after sharp rises in infections in South Korea, Italy, and Iran.
The Korea Centers for Disease Control and Prevention reported an additional 161 cases on Monday morning, bringing the total to 763 nationwide. Most of the new confirmed cases were reported in the city of Daegu.
The outbreak, which has infected nearly 77,000 people and killed more than 2,400 in China, is one of the most serious public health crises in decades.
The coronavirus outbreak that began in China and has since spread to more than 25 countries could put global economic recovery at risk, International Monetary Fund Managing Director Kristalina Georgieva said.