Connect with us

Hi, what are you looking for?

Uncategorized

Coronavirus Is Shutting Down So Many Factories That Oil Demand Is Tanking

So many factories in China — including the ones that make iPhones and GM cars — have shut down due to the coronavirus outbreak that global demand for oil has tanked for the first time since the financial crisis of 2008. Demand for oil is expected to drop by 435,000 barrels a day in the…

Coronavirus Is Shutting Down So Many Factories That Oil Demand Is Tanking

So many factories in China — including the ones that make iPhones and GM cars — have shut down due to the coronavirus outbreak that global demand for oil has tanked for the first time since the financial crisis of 2008.

Demand for oil is expected to drop by 435,000 barrels a day in the first quarter of this year compared to a year ago, according to the International Energy Agency. And the full-year outlook is dim: The agency slashed expectations for demand in 2020 by 30% from where they were before the pandemic.

“There’s little doubt that the virus will have a larger impact on the economy and oil demand than did SARS,” the IEA said in its report.

The pandemic is so bad that it’ll mess with China’s overall economic growth. Economists are revising their predictions for how much the country’s gross domestic product will expand in 2020 from 5% down to between 3% and 4%, according to the Wall Street Journal.

And it’s not helping that the novel coronavirus, now officially (and ominously) called Covid-19, is spreading fast. Chinese officials on Thursday reported 242 new deaths from the coronavirus, and reported infections in mainland China jumped from about 44,700 on Wednesday up to nearly 60,000 on Thursday.

READ: The coronavirus outbreak just got much, much worse

To deal with the crisis, China has quarantined entire cities, instituting “war-time measures” at the epicenter of the outbreak in the Hubei province. Some 60 million people are on lockdown.

Advertisement. Scroll to continue reading.
Page 1 of 2
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © 2020 Tribune Media LLC