Oil crashes to fresh 18-year low as demand suffers unprecedented drop

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

The great oil crash of 2020 ain’t over yet.

US crude plunged nearly 7% and finished at an 18-year low of $20.09 a barrel Monday as the coronavirus pandemic continues to deal a devastating blow to energy demand.
At session lows, oil touched $19.27 a barrel — the weakest intraday price since February 2002.

Brent crude, the world’s benchmark, tumbled as much as 13% and fell to as low as $21.65 a barrel, its lowest point in 18 years. Brent settled at $22.76 a barrel, the lowest close since November 2002.

The renewed selling in the oil patch underscores the unprecedented collapse in demand caused by the social distancing restrictions imposed by governments around the world. Highways are empty. Entire airlines are shutting down. Macy’s (M) just furloughed a majority of its 125,000 workers. Factories large and small have halted production.

Global oil consumption will likely crater by 12 million barrels per day this quarter, or 12%, the steepest decline ever recorded, according to Bank of America.
“It is very ugly and there is no way to sugarcoat it,” Bank of America commodity analysts wrote in a Monday note to clients.

At the same time, Saudi Arabia and Russia are flooding the world with excess oil — at exactly the time when the opposite approach is required. That price war is exacerbating the pain in the oil market.
Those two factors have driven US oil prices down by a stunning 68% since the recent peak of $63.27 a barrel in early January.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Oil Rally Fizzles With OPEC+ Set to Discuss Extending Its Curbs

Oil’s record rally sputtered as investors assessed whether OPEC and its allies will extend the supply curbs that helped drive prices higher. Futures settled slightly...

How Amazon Prime Can Save You Money

How Amazon Prime Can Save You MoneyYou can save a lot of money on a lot of things when you sign up for...

Mesothelioma Treatment – How to Get Help

Mesothelioma Treatment - How to Get HelpThe greatest challenge that any person dealing with mesothelioma would have to face is the question of...

Check Out Billie Eilish Who Appeared In Head-to-Toe Gucci at 2020 Grammy Awards

Billie Eilish’s first-ever appearance at the Grammy Awards is already one to remember. The “Bad Guy” singer chose a custom Gucci outfit wearing her favorite slime green color from...

Here’s where things stand on COVID-19 tests in the U.S.

White House officials have released guidelines to help states decide how — and when — to loosen social distancing measures in a way that prevents the...
Home of Science
Follow me