OREANDA-NEWS. The spread of coronavirus type 2019-nCoV has led to a sharp decline in oil demand in China, according to Bloomberg. According to agency sources familiar with the country's energy market, daily oil consumption in China has already decreased by about 3 million barrels, that is, by 20%.

The head of the Iranian Ministry of Oil, Bijan Namdar Zangane, also announced the impact of coronavirus on the world oil market, the Iranian news agency reported. According to the minister, the spread of infection in some cases led to the suspension of a number of industries and the closure of transport links, which caused a drop in oil demand. Zangane noted that a decline in demand in the face of continued supply always leads to a drop in prices.

"The oil market is under pressure, prices fell by more than $ 5 per barrel, efforts are needed to balance the situation", the minister said, noting that Iran will not negotiate to reduce production due to the sanctions imposed on it.