The demand for oil in China, the largest consumer of this resource, may be reduced by 10% or 14 million barrels per day due to the outbreak of pneumonia in the country caused by the new coronavirus.

If the epidemic lasts for six months, then the growth of oil inventories will put pressure on oil quotes for another year, follows from a report by Moody's, TASS reported.

If demand falls for six months, global oil reserves may increase by 250 million barrels if there is no proportionate reduction in supply. 

Such a growth is able to restrain the growth of oil prices during the year, the agency’s analysts write.

They draw parallels with the oil crisis of 2015-2016, when Brent quotes fell to $ 28 per barrel. Then the oil reserves of the OECD countries grew by 300 million barrels.

If the OPEC + member states continue to reduce production further, this will keep the price at around $ 50 per barrel, according to Moody's. Further price reductions could also lead to a drop in shale oil production in the US, agency experts note.

Coronavirus could bring down gas prices, since China is its largest buyer.