InvestorQ : Did the Chinese Corona virus actually cause the flash crash in oil prices in the last one month?
vidhya Laxmi made post

Did the Chinese Corona virus actually cause the flash crash in oil prices in the last one month?

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1 year ago
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The irony is that most people did not realize that the price of crude oil had touched a year-low at $54/bbl and had fallen nearly 20% in a span of just 2 months. One of the major factors driving oil prices down was the Chinese pandemic fear. The Chinese Coronavirus fears may have abated but the quantum of hit has been huge. For example, it has already left nearly 700 persons dead and close to 1 lakh affected by the virus. Even the WHO has declared it a pandemic and that has resulted in international airlines cancelling flights to China and also other nations putting trade and commerce embargoes on China. Even Chinese production has been badly impacted in the Wuhan region and beyond and these regions will take a long time to come back to normal. Till then, the overhang on oil demand will continue, long after the virus scare is gone.

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