Oil fell below $22 as the collapse in global consumption as a result of the coronavirus outbreak showed no sign of abating, pressuring refiners and producers globally.
Futures in New York fell as much as 4.5%. While global stocks staged a partial recovery this week as policy makers sought to cushion the blow from the virus, there have been more signs of a demand collapse. Mega-refineries from India to South Korea are slashing their consumption, while top trader Trafigura said it expects demand to plummet by 22 million barrels a day next month
Lower prices are already taking their toll, with producers facing forced production cuts for the first time in 35 years. Suppliers from Brazil to Canada are already acting, while Nigeria said it will pump as much as it can at low prices, but may have to shut in production.
