Oil is dirt cheap, WTI falls to $11 per barrel
NEW YORK/NEW DELHI : Oil plunged to the lowest level since 1986 as the coronavirus pandemic ravaged global economies.
In New York, West Texas Intermediate (WTI) dropped by a staggering 43%, the most since the contract began trading in 1983, to $10.34 a barrel, the weakest level since 1986. The plunge was exaggerated as the May futures contract expires on Tuesday.
Economic activity has ground to a halt as governments around the globe extend shutdowns to stem the swift spread of the coronavirus. Oil has faced its own knock-on effects with a market massively oversupplied and nowhere to store physical barrels. Despite the unprecedented output deal by Organization of the Petroleum Exporting Countries (Opec) and allied members a week ago to curb supply, it’s become too little too late in the face of pandemic lockdowns reducing global crude demand by about a third.
