Oil Prices Plunge On Coronavirus Fears

Its obvious China has a big health, economic and social problem on its hands due to spread of the virus. Five million people moved out of Wuhan area before the quarantine was initiated and air travel curtailed. With a five day virus incubation period no one knows how many carriers there are and where they are until cases diagnosed. For each case health authorities have to retrace each patient's contacts with others...a daunting task with cases popping up all over the world. It will take a year at least to develop a vaccination and even longer to build up supplies. This crisis could subside or explode globally. Chinese government and other governments are trying to keep a lid on it but as the number of cases grow and appear on every continent it won't be long before the public demands increased action and isolate entry and exit from China.

Low oil prices = lower gas prices = more robust economy just in time for the landslide re-election.

Unfortunately any positive low oil price affect on the economy may be more than offset by the negetive impact of potential restrictions put on China...no flights in or out or no export of goods by air or ship from or to China. Sounds extreme but if this crisis escalates exponentially total isolation/quarantine of China
will be on the table.

Traders are like cats. Anything can set them off. I would not put too much into this drop. The world is awash in oil. Prices should be much lower really but they are not.