Oil sinks below $30 as recession fears weigh amid coronavirus pandemic

Oil fell below $30 a barrel on Tuesday to its lowest since 2016 as the coronavirus pandemic hits economic growth and oil demand while Saudi Arabia and Russia battle for market share.

Countries including the United States and Canada, along with nations in Europe and Asia, are taking unprecedented steps to contain the virus, curbing demand for crude and products such as gasoline and jet fuel.

Brent crude slipped 1.5% to $29.57 a barrel at 1316 GMT, having earlier touched $29.44, the lowest since January 2016. U.S. West Texas Intermediate (WTI) crude rose 0.7% to $28.91.

“Unfortunately for the bulls, we believe we have not seen the worst of the price rout yet,” said Bjornar Tonhaguen of Rystad Energy.”

“The market will soon come to realize that the it may be facing one of the largest supply surpluses in modern oil market history in April.”