Oil prices are down by nearly 3% on Monday, falling to their lowest levels in a week, as the rapid spread of coronavirus in several countries outside China has resumed investor concerns about raw material demand.

The price of the international Brent variety drops by 1.64 USD, or 2.80%, to 56.86 USD per barrel, while the futures on the US light crude oil WTI are down by 1.42 USD, or 2.366%, to 51.96 USD per barrel.

“In the middle of last week, we had reached a general consensus that the economic impact would be temporary and at least partly offset by the actions of central banks”, said Michael McCarthy, chief market strategist at CMC Markets. “But since we saw European and US exchanges respond on Friday night and following the weekend’s global spread of the virus, investors are now questioning the prospects for economic growth, and this, of course, is weighing on the oil markets”, added he.

The South Korean government has announced that the number of infected people has exceeded 700, with 7 already dead. In Italy, a third person died because of the virus, and the number of those infected is already more than 150 from just three on Friday.

Authorities in Iran have confirmed 43 infected and eight deaths, most of them in the Shiite Muslim holy city of Qom. Saudi Arabia, Kuwait, Iraq, Turkey, and Afghanistan impose restrictions on travel to and from the Islamic Republic.

“We should not underestimate the economic downturn, as the coronavirus can cause a massive decline in business activity around the world in proportions that the world has never faced before”, says Stephen Innes, AxiCorp’s chief marketing strategist.

On Monday, China’s local health committees said that four provinces in China – Yunnan, Guangdong, Shanxi, and Guizhou – had reduced coronavirus measures.

Chinese President Xi Jinping said on Sunday that the world’s largest energy consumer will adjust its policies to help reduce the impact of contagion on the country’s economy.

In the United States, the number of oil rigs, an indicator of future production, has increased for the third consecutive week. The total number of facilities is currently 679 – the highest since the week ended December 20, according to energy services company Baker Hughes Co.