U.S. West Texas Intermediate crude futures, meanwhile, plunged 3.8 percent to a three-and-a-half-month low of $52.15 per barrel.
"Investors react quickly to any sign of negativity and this is no exception as China announces that the issue has become an emergency. This could keep oil prices fragile until the coronavirus shows signs of slowing down," said Mihir Kapadia, CEO at Sun Global Investments.
The deadly disease caused by the coronavirus so far killed 81 people in China with almost 3,000 confirmed ill, while at least 44 cases have been reported abroad in countries as far as Singapore, France and the U.S.
The Economist Intelligence Unit said the longer-term impact of the coronavirus will depend on how quickly it is contained and the confidence of the public in the authorities' ability to take effective measures. “The experience of previous disease outbreaks, including SARS in 2002-03, suggests that consumer spending could be negatively affected in the next two-three months, but that this is likely to be compensated for later in the year,” commented EIU global economist, Cailin Birch. In the wake of the SARS outbreak, the Chinese economy slowed from 11 percent to 9 percent and recovered slowly.
Shares at London's FTSE 100 share index today shed more than 2 percent, with luxury clothes maker Burberry loosing 5.5 percent in share value. Other loss-making shares were British Airways owner IAG and HSBC Holding.