U.S. Crude Drops 21% to a 20-Year Low as the COVID-19 Crisis Hinders Oil Demand!

The U.S. crude prices plunged 21% to its lowest since 1999 as the impact of the coronavirus outbreak still weighs on oil demand despite a 9.7 million barrel cut per day from OPEC and Non-OPEC.

As of 9:20 local time in Thailand, Monday, WTI crude futures dropped $2.58/bbl or 14.12% to $15.69/bbl, while Brent crude futures shed $0.14/bbl or 0.50% to trade at $27.94/bbl. At one point, WTI fell as much as 21% and $14.47/bbl, the lowest level since March 1999.

Reuters reported that major oil companies such as Chevron Corp, BP plc and Total SA had already announced supply reductions with an estimated record 160 million barrels of oil stored onboard ships suggesting prices will keep falling.