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

The Papers: ‘Murder at the shops’ and ‘doctors demand 30% rise’on June 27, 2022 at 10:55 pm

A Russian missile strike on a Ukrainian mall and the prospect of a doctors' strike lead the front pages.A Russian missile strike on a...

R. Kelly: US singer faces decades in jail at sex trafficking sentencingon June 29, 2022 at 12:18 am

The disgraced pop star will be sentenced on Wednesday after being found guilty of sex trafficking.The disgraced pop star will be sentenced on Wednesday...

How Has Khalid and Abdul Led to Such a success?

Through the years, Khalid and Abdul can be seen on screen playing opposite one another in "American Idol"Chef." The two have been teaming up...

Energy firms face deadline in review of direct debit hikeson May 3, 2022 at 1:50 pm

Some companies have three weeks to respond to accusations they have set direct debits too high.Image source, Getty ImagesSome energy suppliers have been given...

Billie Eilish and her Bumblebee Doll

Billie Eilish and her Bumblebee DollBillie Eilish was at first not sure if her story about getting her son a Bumblebee doll would...
Home of Science
Follow me