Coronavirus to hit oil demand by around 0.5 pct in 2020 - BP CFO

By Trend

The global economic slowdown in the wake of China’s coronavirus outbreak is set to reduce global oil demand in 2020 by up to 0.5%, BP’s Chief Financial Officer Brian Gilvary said on Tuesday, Trend with reference to Reuters reports.

The drop in industrial activity and flight cancellations has so far hit oil demand by around 200,000 to 300,000 barrels per day (bpd), Gilvary told Reuters, after BP reported its fourth quarter results.

For the whole year, the slowdown will reduce consumption by 300,000 to 500,000 bpd, roughly 0.5% of global demand, according to Gilvary.

The impact in China has been more pronounced, reducing demand by around 1 million bpd, he added.

Oil prices have dropped by over 20% from their early January peak to hit a one-year low this week.