New York City (Reuters) – Oil costs plunged on Wednesday, with U.S. unrefined futures hitting an 18- year low, as federal governments worldwide sped up lockdowns to counter the coronavirus pandemic that is causing global fuel need to collapse.
FILE IMAGE: Pump jacks operate at sundown in Midland, Texas, U.S., February 11,2019 REUTERS/Nick Oxford
With governments around the world urging homeowners to restrict events and separate themselves, global oil need by the end of March might fall as much as 8 million to 9 million barrels each day (bpd), Goldman Sachs stated.
Investors broadly got away dangerous possessions once again on Wednesday, after equity markets recovered on Monday. U.S. stocks slumped, with the S&P 500 dropping 7%, setting off a 15- minute halt to trading, while copper futures fell 6.9%.
U.S. unrefined CLc1 was down $5.19, or 19%, at $2176 a barrel. The session low was the most affordable since March2002 Brent crude LCOc1 was trading down $3.37, or 12%, at $2535 a barrel by 1: 20 p.m. EDT (1720 GMT) after dropping as low as $2523, its weakest given that2003
The oil market was already reeling after Saudi Arabia chose this month to dramatically increase supply given that it and Russia could not consent to cut output in anticipation of weaker demand.
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