APAC Energy Buzz: Wuhan virus and China’s jittery commodity markets

The WHO has announced that the novel coronavirus (2019-nCoV), first detected in Wuhan, is now a ‘Public Health Emergency of International Concern’. As of February 4, there are over 20,000 cases of 2019-nCoV confirmed globally, the vast majority within China. There are reasons to remain positive, in no small part due to the Chinese government’s highly proactive efforts to slay the ‘demon’. China quickly identified the virus and shared its sequence, allowing other countries to diagnose cases and introduce measures to prevent its spread. Travel restrictions are blunt but effective tools. But even a short-lived coronavirus outbreak is inevitably impacting energy demand and prices. With the focus on transportation, jet fuel, and to a lesser degree diesel and gasoline, are hit hardest. To avoid a worsening outlook, the push for global containment must continue.