Brent crude extends fall as coronavirus shutdowns sap demand - Reuters

Brent crude extends fall as coronavirus shutdowns sap demand - Reuters:

Brent crude prices extended falls on Monday with demand sliding as travel and industrial activity contracted across the globe in a bid to stem the spread of coronavirus.

Brent crude LCOc1 futures had fallen $1.54, or 5.7%, to $25.44 a barrel by 1004 GMT. West Texas Intermediate (WTI) crude CLc1 futures were down 36 cents, or 1.6%, at $22.27 a barrel, having fallen 2 percentage points more than Brent this year.

The demand destruction caused by the coronavirus pandemic comes as the oil market contends with the unexpected price war that erupted between producers Russia and Saudi Arabia, effectively ending an OPEC+ alliance and flooding the market with barrels.

The six-month spread of Brent futures LCOc1-LCOc7 hit its steepest since 2009 at a discount of more than $9, a contango structure which reflects the current oversupply.