Oil and other financial markets dropped sharply today after a string of new coronavirus cases were announced this weekend. Korea raised its infectious disease alert to the highest level after it reported its 7th death from the virus and 70 new cases. Italy reported 3 deaths out of 150 infected, and Iran reported 12 deaths out of 62 confirmed cases. Apart from weak demand due to continued Chinese disruptions and inventories build, a slow economic pick-up may add to the risk of oil inventories exceeding storage capacity and, in turn, create a substantial downside to oil prices, Goldman Sachs said. President Xi of China said yesterday they would step up countercyclical adjustments to prevent the economy from “slipping out of a reasonable range”. Oil prices will remain vulnerable here as most energy traders were not pricing in the coronavirus potentially becoming a pandemic. WTI traded down $1.95 or -3.65% to close at $51.34. Brent traded down $2.25 or -3.85%