The global oil market expects the coronavirus outbreak to create a large demand shock and keep volatility in spot prices elevated, Goldman Sachs said.

The market is pricing in a 500,000 barrels per day average year-on-year loss in oil demand for 2020, all else constant (except for the positive impact of lower oil prices on demand), the Wall Street Bank said in a note dated Feb. 3.

Crude oil prices fell to their lowest in more than a year on Feb. 3 as the virus outbreak curtailed Chinese demand and sparked potential supply cuts by OPEC and its allies.

“Oil prices are now at levels where we would expect a supply response from both OPEC and shale producers, and where China would likely seek to build crude inventories,” Goldman Sachs said.

The bank also said the market is expecting a negative impact of 0.44% on global GDP due to the virus.

The new coronavirus has killed over 420 people and infected thousands across more than a dozen nations, raising fears of a global economic fallout.