Oil fell further after hitting a seven-week low on speculation that China’s coronavirus outbreak may dent demand, just as the market already contends with plentiful supplies.

Futures lost 1.6% in New York to trade below $56 a barrel as the world’s biggest oil importer effectively quarantined a major city to contain the SARS-like virus, which Goldman Sachs Group Inc. has warned could trim global demand. The alert has overshadowed any concern over the suspension of exports from Libya, where a militia leader has ordered ports to close.

West Texas Intermediate futures for March delivery fell 92 cents to $55.82 a barrel on the New York Mercantile Exchange as of 10:27 a.m. London time, after dropping as much as 2.1% earlier. The contract lost 2.8% on Wednesday. Brent futures declined by 84 cents, or 1.3%, to $62.37.

Source : Bloomberg