The spread of the coronavirus has already hit demand for oil, clobbering prices — a problem for US producers, which are clustered in red states like Texas, Alaska and North Dakota, as well as purple states like New Mexico where Trump lost in the 2016 election.
In 2019, China’s oil demand made up about 14% of the world market and accounted for half of world oil demand growth, according to IHS Markit.
Plus, demand for jet fuel has also taken a hit because major airlines have suspended all flights to and from mainland China.
But it remains unclear if prices will remain low as the health crises continues. OPEC could decide to cut oil production, but has yet to decide on a plan.