【BBC NEWS】Coronavirus: Oil price collapses to lowest level for 18
years
30 March 2020
The
price of oil has sunk to levels not seen since 2002 as demand for crude
collapses amid the coronavirus pandemic.
Brent
crude fell to $22.58 (£18.19) a barrel at one point on Monday, its lowest level
since November 2002.
Meanwhile
the price of US West Texas Intermediate (WTI) fell below $20 a barrel and close
to an 18-year low.
Oil
prices have fallen by more than half during the past month as companies cut
back or close production.
In
addition to the drop in demand, a price war broke out earlier this month between
Saudi Arabia and Russia.
This
began when Saudi Arabia failed to convince Russia to back production cuts that
had been agreed with the other members of the Opec oil producers' group.
The
decision came as refineries around the world are processing less crude oil. Demand for transport has been hammered by grounded airlines and
fewer cars on the roads as countries bring in tougher
measures to fight the coronavirus outbreak.
However, an analyst said a
collapse in demand from the measures taken to counter the spread of coronavirus
was now the main factor.
"Oil
prices failed to keep pace, with growing (coronavirus) lock-down measures and
reports that this could drive global demand down 20%, potentially pushing the
world to run out of storage capacity," said Morgan Stanley analyst Devin
McDermott, citing a forecast by the Paris-based International Energy Agency.
this article is cited from:
https://www.bbc.com/news/business-52089127