Oil hits new lows as as coronavirus crisis hammers demand

Oil slumped to less than $16 a barrel on Wednesday, hitting its lowest since 1999, with the market awash with excess supply as the economic fallout from the coronavirus pandemic hammers demand for fuels.

A glut has been building since OPEC+, led by Saudi Arabia and Russia, failed to renew output cuts last month. OPEC+ agreed new curbs this month, but government lockdowns to contain the pandemic have cut fuel demand more steeply.

Brent crude, which fell 24 per cent in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down 62 cents, or 3.2 per cent, at $18.71 by 0950 GMT. US West Texas Intermediate was down 60 cents, or 5.2 per cent, at $10.97.