Crude oil futures slide as coronavirus pandemic darkens demand outlook
Crude oil benchmarks dropped on Monday, extending last week’s losses as the global coronavirus pandemic worsened and the Saudi Arabia-Russia price war showed no signs of abating.
US West Texas Intermediate (WTI) crude futures hit a low of $19.92 in early trading and last traded down 5.2 per cent, or $1.12, at $20.39 a barrel as of 2332 GMT, while Brent futures fell 5.6 per cent, or $1.40, to $23.53 a barrel.
The oil markets are enduring a twin shock of demand destruction caused by the coronavirus pandemic and the Saudi-Russia price war that is flooding markets with extra supply.
With the demand now forecast to plunge 15 million or 20 million barrels per day, a 20 per cent drop from last year, analysts say massive production cuts will be needed beyond just the Organization of the Petroleum Exporting Countries (OPEC).
