The impact of 2019-nCoV on oil demand

The ongoing coronavirus outbreak and subsequent large-scale quarantine measures are posing a major economic risk to China and beyond. As China’s economy is already under pressure from a lingering trade conflict with the US, this is adding to downward pressure to its oil demand. The preventive measures taken by the Chinese government focus mainly on aviation and public passenger transport although other sources of oil demand will be affected. In this Insight, we present our viewpoints to assess the impact of the ongoing coronavirus outbreak on oil demand. Which sectors are targeted by preventive actions taken by the government? What occurred to oil demand during the 2003 SARS outbreak? Which products demand are most affected? How substantially would demand be affected in China and globally?