• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 8 hours U.S. Presidential Elections Status - Electoral Votes
  • 13 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Australia sues Neoen for lack of power from its Tesla battery
  • 6 hours Evergrande is going Belly Up.
  • 2 days Europeans and Americans are beginning to see the results of depending on renewables.
  • 5 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 day Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 23 hours Oil Price: does the security vacuum in the Middle East spook investors?
  • 22 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 2 days Ozone layer destruction driving global warming
  • 5 days Forecasts for Natural Gas

Coronavirus Halts Flow Of Latin American Oil To China

The flow of oil traveling from Latin America to China has stopped in the wake of the deadly outbreak of the coronavirus that has sunk oil prices to three-month lows, with no oil making its way from Brazil or Colombia to China since last week, according to Bloomberg. 

Chinese refineries are responsible for taking one-third of all oil from Brazil, Colombia, and other Latin American countries.

The demand for jet fuel and gasoline stemming from travel restrictions that have been put in place in an effort to stop the virus from spreading is expected to fall sharply, which will inevitably catch up to the refineries who are expected to cut back production at some point. 

Brazil is the main Latin American supplier of crude oil to China--particularly to the independent refiners known as teapots, who are most exposed to the effects of reduced demand.

According to Bloomberg, the death toll from the virus has climbed to 170, with more than 8,000 infected with the coronavirus in China.

So much so is the fear surrounding the effect on oil demand and prices that OPEC announced yesterday that it is considering moving up its March meeting as the effects of the deadly coronavirus continues to exert strong downward pressure on oil prices.

The cartel was said to already be discussing an extension of the current production cut agreement, and that all options were on the table.

Even with Libya’s oil production plummeting by nearly 1 million barrels per day (bpd) due to the port blockade by forces loyal to General Khalifa Haftar, oil prices have seen downward pressure over the past week and a half as fears of oil demand destruction currently outweigh supply outages.

Earlier in the week, Petrobras said it had suspended all employee travel to China due to the virus, but was quick to add that shipments of oil to China would continue.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News