Oil price strikes 2002 low, as demand set to crash

Oil prices extended their slump Wednesday, with WTI hitting the lowest level since 2002 as planned output cuts were deemed insufficient to offset a coronavirus-fuelled slump in demand.

The benchmark WTI contract tumbled to $19.20 per barrel, the lowest level in 18 years.

Shortly after, around 0920 GMT, WTI was down 2.3 percent at $19.66 per barrel and Brent showed a 3.6-percent loss at $28.54.

“Crude oil has been hit hard… as a massive drop in demand highlights the shortcomings of the OPEC+ production cut,” noted Joshua Mahony, senior market analyst at IG trading group.

“Whether today’s slump in oil prices serves to rally OPEC+ into another cut remains to be seen.”