As the coronavirus continues to spread through China, some workers there are temporarily off the job, shops have closed and flights have been canceled. All of that is having an effect on China’s economy, and it’s starting to have ripple effects globally.
Matt Smith of ClipperData says for Texas, the effect will likely be greatest on the oil and gas industry. He says groups like OPEC and the U.S. Energy Information Administration are revising their 2020 projections to show a slowing oil market in the wake of the epidemic. But he says their projections aren’t catastrophic.
“It’s a little less than what we’ve seen in recent years, but it’s still holding up pretty well,” Smith says.
What you’ll hear in this segment:
– How oil prices are in a holding pattern until the extent of the coronavirus epidemic is better understood
– Why the coronavirus is bound to have additional effects on the U.S. and Texas economies
– How fewer jet fuel orders are one sign of a slowing global economy
Written by Caroline Covington.