Shares of energy companies fell alongside oil futures after Chinese authorities put two more cities on lockdown because of the Wuhan virus scare.
Trains and flights out of Wuhan were already halted, when, on Thursday, authorities in Huanggang, a nearby city with 7.5 million people, said they wouldn't let long-distance trains and buses run from the urban center and would shut down public transportation. Ezhou, another neighboring city with just over a million residents, said it would enact similar restrictions, as reported earlier.
"Clearly the demand structure for the energy complex has been jeopardized due to the outbreak of the Coronavirus," said Phillip Streible, of Blue Line Futures, as reported earlier.
"Widespread speculation that air travel will be curbed ahead of the Chinese New Years could lead to a larger glut in oil supplies."
German engineering giant Siemens and Arabian state oil company Saudi Aramco plan to work together on developing a fuel that would produce lower emissions, as reported earlier. Kinder Morgan rose after the pipeline operator reported higher demand for its services.
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