Coronavirus and oil: Why crude has been hit hard.

The world's biggest oil producers could be about to slash output as they grapple with the fallout of the coronavirus.

Representatives บาคาร่า of OPEC and its allies are expected to meet this week as calls grow for action to support oil prices.

Brent crude has hit its lowest level in a year after falling 20% since its peak in September.

So why is the virus caover outbreak having such a major impact on the global energy market?

Why have global oil prices fallen so much?

As the Lunar New Year holiday คลิปโป๊ has been extended in much of China and travel restrictions are in place factories, offices and shops remain shut.

That means the world's biggest importer of crude oil, which usually consumes about 14m barrels a day, needs a lot less oil to power machinery, fuel vehicles, and keep the lights on.

The outbreak is likely to have a particularly คลิปโป๊ large impact on demand for jet fuel as airlines around the world suspend flights to China, and travel restrictions within the country mean far fewer flights.

Bloomberg reported this week that China's daily crude consumption has slumped by 20%, the equivalent of the UK and Italy's oil needs combined.

In response Asia's largest oil refiner คลิปโป๊ Sinopec, which is owned by the Chinese government, has cut the amount of crude it is processing by around 600,000 barrels per day, or 12%, its biggest cut in more than a decade.

The scale of the คลิปโป๊ fall has shocked the energy industry, according to Chicago-based oil analyst Phil Flynn: "We have not seen a demand destruction event of this scale that moves this quickly.

What does this tell us about คลิปโป๊ outbreak's impact on the global economy?

he sharp fall คลิปโป๊ in oil demand is a clear symptom of a drop in business activity in China and a sign that the country's economic growth, which was already at a three decade low, will slow further.

Zhang Ming, an economist at government-backed think-tank the Chinese Academy of Social Sciences, has said the คลิปโป๊ outbreak could push the country's annual economic growth below 5% for the first three months of the year.

China is the world's second คลิปโป๊ largest economy and a key engine of global economic growth as developed countries struggle to boost growth. Any negative คลิปโป๊ impact in China is almost certain to ripple across the world.

This week the managing คลิปโป๊ director of the International Monetary Fund, Kristalina Georgieva, said the epidemic is likely to slow world economic growth in at least the short-term but cautioned that it is still too early to tell further ahead:

 "We have to assess how quickly action is being taken to contain the คลิปโป๊ spread of coronavirus and how effective this action is.