Opec’s coronavirus discussions are proof of the global nature of this crisis

This will give another push to the trend of businesses attempting to simplify their manufacturing processes, writes Hamish McRae

Volunteers in protective suits disinfect a railway station in Hunan province on Tuesday (cnsphoto via Reuters)

The tentacles of the coronavirus have embraced the oil market, and Opec seems set to decide on an emergency cut in oil production to offset a collapse in demand from China.

The oil market gives a snapshot of what is happening to the world economy, and in particular to world trade. Airlines cutting their flights to China have an immediate impact on aircraft fuel, but that is just an early sign of wider pressure. If factories in China shut down production, they will use less power. Many products use petroleum as a feedstock. If fewer goods are being produced, fewer ships will be needed to carry those goods around the world. So demand for bunker fuel declines.

The travel and tourism industry is affected far from China, partly because fewer Chinese people are travelling, and partly because advice to non-Chinese not to travel to China is cutting travel to southeast Asia as well. The latest warning from the UK Foreign Office that UK residents should leave China will have a particularly chilling effect.