U.S. oil plunges to 18-year low as lockdowns trigger market meltdown - Reuters:
Oil prices plunged on Wednesday, with U.S. crude futures hitting an 18-year low, as governments worldwide accelerated lockdowns to counter the coronavirus pandemic that is causing global fuel demand to collapse.
Oil futures have lost more than half their value in the past 10 days, as schools have closed, businesses have shuttered and governments worldwide have urged residents to limit gatherings.
Global oil demand by the end of March could fall as much as 8 million to 9 million barrels per day (bpd), Goldman Sachs said.
Investors broadly fled risky assets again on Wednesday, after equity markets recovered on Monday. U.S. stocks slumped, with the S&P 500 dropping 7%, triggering a 15-minute halt to trading, while copper futures fell 6.9%.
U.S. crude CLc1 fell $6.58, or 24.4%, to settle at $20.37 a barrel. U.S. crude futures have lost 56% over last 10 days, in the worst 10-day trading stretch since the contract launched in 1983.
Brent crude LCOc1 settled down $3.85, or 13.4%, at $24.88 a barrel after dropping as low as $24.52, its weakest since 2003.
Oil prices plunged on Wednesday, with U.S. crude futures hitting an 18-year low, as governments worldwide accelerated lockdowns to counter the coronavirus pandemic that is causing global fuel demand to collapse.
Oil futures have lost more than half their value in the past 10 days, as schools have closed, businesses have shuttered and governments worldwide have urged residents to limit gatherings.
Global oil demand by the end of March could fall as much as 8 million to 9 million barrels per day (bpd), Goldman Sachs said.
Investors broadly fled risky assets again on Wednesday, after equity markets recovered on Monday. U.S. stocks slumped, with the S&P 500 dropping 7%, triggering a 15-minute halt to trading, while copper futures fell 6.9%.
U.S. crude CLc1 fell $6.58, or 24.4%, to settle at $20.37 a barrel. U.S. crude futures have lost 56% over last 10 days, in the worst 10-day trading stretch since the contract launched in 1983.
Brent crude LCOc1 settled down $3.85, or 13.4%, at $24.88 a barrel after dropping as low as $24.52, its weakest since 2003.
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