(Reuters) – Standard Chartered (LON:) on Tuesday said it expects global oil demand to decline by a record amount in 2020 citing the rapidly spreading coronavirus and the travel restrictions imposed to contain it.

The bank expects the year-on-year fall in demand at 10.4 million barrels per day in April and average annual demand to fall by a record 3.39 million barrels per day in 2020.

“The demand shock from the spread of the coronavirus had combined with the supply shock from the collapse of the OPEC+ agreement to create a heavily oversupplied market,” Standard Chartered said.

“However, over the past week the restrictions placed on mobility by European and North American governments as part of their coronavirus response have significantly magnified the negative demand shock.”

Measures to contain the coronavirus outbreak around the world are curbing demand for crude and products such as gasoline and jet fuel.

Standard Chartered reiterated its second quarter forecast of $23 per barrel, and Q3 Brent forecast of $27 per barrel adding the Q2-low will likely be well below $20 a barrel.

Oil fell below $30 a barrel on Tuesday to its lowest since 2016 as the coronavirus pandemic hits economic growth and oil demand while Saudi Arabia and Russia battle for market share. [O/R]