TULSA, Okla. — Amidst the falling stock market influenced by the coronavirus outbreak, oil prices are crashing again, taking stocks down with them.
Exxon Mobil sank to a five-year low on Monday, and Chevron dropped to its lowest value since 2016. The crash comes on the heels of Saudi Arabia launching a price war, according to CNN, but is also being fueled by a sharp drop in demand caused by the coronavirus scare.
Because travelers are canceling vacations, and the virus' spread has grounded flights worldwide, energy demand is down, according to CNN. That effect is seen especially in China, the world's number-one importer of crude oil.
The International Energy Agency expects demand will contract in 2020, that would be the first time since the recession in 2009 followed the global financial crisis, according to CNN.
A price war could have an impact on US oil producers and energy jobs in states such as Oklahoma, according to CNN. Other affected states include Texas, Louisiana, New Mexico, and North Dakota.
Stay in touch with us anytime, anywhere.
Sign up for newsletters emailed to your inbox. Select from these options: Breaking News, Severe Weather, School Closings, Daily Headlines and Daily Forecasts.