World News

Coronavirus to slow down demand growth, says ConocoPhillips

(Reuters) – U.S. oil and gas producer ConocoPhillips <COP.N> said on Tuesday it expects demand growth to slow, hit by China’s coronavirus epidemic.

The company expects demand growth in 2020 to be lower by 100,000 to 200,000 barrels per day (bpd) from its earlier projection of 1 million bpd, Chief Executive Officer Ryan Lance said in a conference call with analysts.

Lance expects build up in storage in the United States and in non-OPEC countries, which will put some pressure on oil prices.

The flu-like coronavirus, declared a global emergency by the World Health Organization (WHO), has claimed 427 lives so far and rattled financial markets. Oil prices fell to their lowest in more than a year on Monday, as the coronavirus outbreak curtailed Chinese demand and sparked potential supply cuts by OPEC and its allies.

(Reporting by Shanti S Nair in Bengaluru)