2020.01.2808:45:00UTC+00Oil Extends Losses On Demand Worries

Oil prices fell further on Tuesday to extend losses from the previous session after China reported 24 more deaths from coronavirus epidemic, taking the number of fatalities to 106 and raising concerns about a hit to global economic growth.

Benchmark Brent crude fell 0.85 percent to $58.08 a barrel, while U.S. crude futures were down 0.7 percent at $52.78.

Companies in the travel and tourism industries are the most likely to be affected as the deadly novel coronavirus spreads to more and more countries.

China is the world's second largest oil consumer, and therefore a broad slowdown in economic activity is expected to weigh on global energy demand.

China has already extended the Lunar New Year holiday to February 2 nationally, and to February 9 for Shanghai.

Tangshan, China's largest steelmaking city in northern Hebei province, announced today that it is suspending all public transit within the city in an effort to prevent the spread of the virus.

Saudi Arabia and the United Arab Emirates (UAE), allies in the Organization of the Petroleum Exporting Countries (OPEC), tried to play down the impact of the virus on Monday, but reports now suggest that the cartel may consider deepening the ongoing production cuts to stave off excessive price slides.