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Wednesday 22 April 2020
#Ramadan kareem to all celebrants - unfortunately this year health guidelines should be followed #stayathome
Crude Oil Latest News: WTI, Brent Updates for April 22, 2020 - Bloomberg
Crude Oil Latest News: WTI, Brent Updates for April 22, 2020 - Bloomberg:
Oil recovered from a 21-year low, bucking two days of frenzied selling.
Brent futures for June delivery closed 5% higher after slumping as much as 17% earlier in the day. West Texas Intermediate crude also gained in New York, ending the day 19% higher following an unprecedented plunge into negative territory on Monday. The market, already inundated with bearish signals, shrugged off a U.S. government report showing that the four-week average for American petroleum demand was at a record low last week while crude stockpiles were at a three-year high.
News that U.S. President Donald Trump authorized the Navy to shoot down Iranian gunboats may have buoyed prices, but crude is not out of the woods yet, according to Robert Yawger, director of the futures division at Mizuho Securities USA. “It could potentially get worse because of the fact that storage is not all that far away from being full,” he said.
Prices near or below zero are expected to persist until producers begin shutting in production at a level that will offset the unprecedented demand collapse caused by the coronavirus pandemic. ICE Futures Europe Ltd. confirmed on Tuesday night that it’s taken steps to prepare for negative Brent pricing. Meanwhile oil traders are rewriting their risk models to accommodate potentially limitless declines.
Oil recovered from a 21-year low, bucking two days of frenzied selling.
Brent futures for June delivery closed 5% higher after slumping as much as 17% earlier in the day. West Texas Intermediate crude also gained in New York, ending the day 19% higher following an unprecedented plunge into negative territory on Monday. The market, already inundated with bearish signals, shrugged off a U.S. government report showing that the four-week average for American petroleum demand was at a record low last week while crude stockpiles were at a three-year high.
News that U.S. President Donald Trump authorized the Navy to shoot down Iranian gunboats may have buoyed prices, but crude is not out of the woods yet, according to Robert Yawger, director of the futures division at Mizuho Securities USA. “It could potentially get worse because of the fact that storage is not all that far away from being full,” he said.
Prices near or below zero are expected to persist until producers begin shutting in production at a level that will offset the unprecedented demand collapse caused by the coronavirus pandemic. ICE Futures Europe Ltd. confirmed on Tuesday night that it’s taken steps to prepare for negative Brent pricing. Meanwhile oil traders are rewriting their risk models to accommodate potentially limitless declines.
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ICE ready to switch model for Brent oil options if prices go negative - Reuters
ICE ready to switch model for Brent oil options if prices go negative - Reuters:
Brent crude oil options are not currently set up to settle at negative prices but the Intercontinental Exchange (ICE) that operates the contract is ready to switch pricing models if necessary, ICE said.
“We currently use Bachelier to settle Brent Calendar Spread Options and other options products where the underlier can trade at negative prices,” a spokeswoman for the ICE said in a statement.
“If Brent prices become negative or we determine that the market wants to trade negative strikes for other oil contracts such as ICE Brent Options, we will look to expand the use of the Bachelier model as necessary.”
Brent crude oil options are not currently set up to settle at negative prices but the Intercontinental Exchange (ICE) that operates the contract is ready to switch pricing models if necessary, ICE said.
“We currently use Bachelier to settle Brent Calendar Spread Options and other options products where the underlier can trade at negative prices,” a spokeswoman for the ICE said in a statement.
“If Brent prices become negative or we determine that the market wants to trade negative strikes for other oil contracts such as ICE Brent Options, we will look to expand the use of the Bachelier model as necessary.”
#SaudiArabia: What happens when the oil stops | @MiddleEastEye
Saudi Arabia: What happens when the oil stops | Middle East Eye:
Saudi Arabia's Crown Prince Mohammed bin Salman (MBS) can no longer plead youth or inexperience.
That time has passed.
What you see is what you get. The misrule, blunders and war associated with him as crown prince will only continue with him as king.
The full repertoire of the crown prince's statecraft was on display in a stormy telephone call he made to Russian President Vladimir Putin on the eve of an Opec meeting last month which ended in a calamitous price war between Saudi Arabia and Russia.
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| Saudi Crown Prince Mohammed bin Salman (AFP) |
Saudi Arabia's Crown Prince Mohammed bin Salman (MBS) can no longer plead youth or inexperience.
That time has passed.
What you see is what you get. The misrule, blunders and war associated with him as crown prince will only continue with him as king.
The full repertoire of the crown prince's statecraft was on display in a stormy telephone call he made to Russian President Vladimir Putin on the eve of an Opec meeting last month which ended in a calamitous price war between Saudi Arabia and Russia.
Ritz buyer revealed as brother-in-law of #Qatar’s ruler | Financial Times
Ritz buyer revealed as brother-in-law of Qatar’s ruler | Financial Times:
A 40-year-old Qatari businessman who is the brother-in-law of the Gulf state’s ruler is the new owner of London’s Ritz Hotel, UK company filings show.
An unnamed Qatari investor agreed to buy the Mayfair hotel from the billionaire Barclay family last month, inflaming tensions in a bitter family fight between Sir Frederick and Sir David Barclay.
Filings at the UK’s Companies House show that the hotel is now owned by Qatari businessman Abdulhadi Mana Al-Hajri, who is the brother of Sheikha Al-Anoud, the second wife of Sheikh Tamim bin Hamad Al Thani, the emir of Qatar.
Mr Al-Hajri took control of a company called Green Park (No 1) Limited on February 25. This company acquired the group that ultimately owned the Ritz a month later on March 25, two days before UK law firm Macfarlanes announced it had advised an unnamed Qatari buyer of the London hotel.
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| A Qatari investor agreed to buy the Ritz hotel in Mayfair, London, from the billionaire Barclay family last month © AFP via Getty Images |
A 40-year-old Qatari businessman who is the brother-in-law of the Gulf state’s ruler is the new owner of London’s Ritz Hotel, UK company filings show.
An unnamed Qatari investor agreed to buy the Mayfair hotel from the billionaire Barclay family last month, inflaming tensions in a bitter family fight between Sir Frederick and Sir David Barclay.
Filings at the UK’s Companies House show that the hotel is now owned by Qatari businessman Abdulhadi Mana Al-Hajri, who is the brother of Sheikha Al-Anoud, the second wife of Sheikh Tamim bin Hamad Al Thani, the emir of Qatar.
Mr Al-Hajri took control of a company called Green Park (No 1) Limited on February 25. This company acquired the group that ultimately owned the Ritz a month later on March 25, two days before UK law firm Macfarlanes announced it had advised an unnamed Qatari buyer of the London hotel.
#UAE News: #AbuDhabi Sheikh Tahnoon Fund in $1 Billion LuLu Bet - Bloomberg
UAE News: Abu Dhabi Sheikh Tahnoon Fund in $1 Billion LuLu Bet - Bloomberg:
An investment firm backed by a member of Abu Dhabi’s royal family agreed to buy a stake worth just over $1 billion in LuLu Group International, which runs one of the Middle East’s largest hypermarket chains, according to people familiar with the matter.
The company led by Sheikh Tahnoon Bin Zayed Al Nahyan acquired an almost 20% holding in the Abu Dhabi-based supermarket group founded by Indian entrepreneur Yusuff Ali, the people said, asking not to be identified as the matter is private. It wasn’t immediately clear which company Sheikh Tahnoon is using for the investment or if he was buying the stake in his personal capacity, the people said.
Sheikh Tahnoon is the chairman of Royal Group, which has holdings in businesses such as media, trade, financing and real estate among others, according to its website. He is also the chairman of First Abu Dhabi Bank PJSC, the U.A.E.’s biggest lender.
“We don’t want to comment on market rumors,” said V. Nandakumar, Lulu’s chief communications officer. “An official statement will be issued if at all there are any updates.”
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| A Lulu hypermarket sits in Salalah, Oman.
Photographer: Schellhorn/ullstein bild via Getty Images
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An investment firm backed by a member of Abu Dhabi’s royal family agreed to buy a stake worth just over $1 billion in LuLu Group International, which runs one of the Middle East’s largest hypermarket chains, according to people familiar with the matter.
The company led by Sheikh Tahnoon Bin Zayed Al Nahyan acquired an almost 20% holding in the Abu Dhabi-based supermarket group founded by Indian entrepreneur Yusuff Ali, the people said, asking not to be identified as the matter is private. It wasn’t immediately clear which company Sheikh Tahnoon is using for the investment or if he was buying the stake in his personal capacity, the people said.
Sheikh Tahnoon is the chairman of Royal Group, which has holdings in businesses such as media, trade, financing and real estate among others, according to its website. He is also the chairman of First Abu Dhabi Bank PJSC, the U.A.E.’s biggest lender.
“We don’t want to comment on market rumors,” said V. Nandakumar, Lulu’s chief communications officer. “An official statement will be issued if at all there are any updates.”
MIDEAST STOCKS-Major Gulf indexes rebound from early losses as oil recovers - Reuters
MIDEAST STOCKS-Major Gulf indexes rebound from early losses as oil recovers - Reuters:
Major stock markets in the Gulf ended
higher on Wednesday, buoyed by recovery in Brent crude after
prices hit their lowest level since 1999 earlier in the session.
OPEC+ agreed new curbs this month, but global measures to
prevent the coronavirus pandemic from spreading have hit demand
and sent oil prices plunging.
Brent crude, which fell 24% in the previous session,
touched $15.98 a barrel on Wednesday, hitting its lowest since
June 1999. By 1120 GMT, it had recovered to trade 1.2% up at
$19.57.
Saudi Arabia's benchmark index rose 0.7%, with Al
Rajhi Bank gaining 1% and oil giant Saudi Aramco
closing 1% higher.
Major stock markets in the Gulf ended
higher on Wednesday, buoyed by recovery in Brent crude after
prices hit their lowest level since 1999 earlier in the session.
OPEC+ agreed new curbs this month, but global measures to
prevent the coronavirus pandemic from spreading have hit demand
and sent oil prices plunging.
Brent crude, which fell 24% in the previous session,
touched $15.98 a barrel on Wednesday, hitting its lowest since
June 1999. By 1120 GMT, it had recovered to trade 1.2% up at
$19.57.
Saudi Arabia's benchmark index rose 0.7%, with Al
Rajhi Bank gaining 1% and oil giant Saudi Aramco
closing 1% higher.
#Dubai Financial Market launches new ESG Index consisting of 20 companies | ZAWYA MENA Edition
Dubai Financial Market launches new ESG Index consisting of 20 companies | ZAWYA MENA Edition:
Dubai Financial Market (DFM) has launched the UAE Index for Environment, Social and Governance (ESG) to encourage listed companies in the UAE to expand embracing ESG best practices.
The S&P/Hawkamah UAE ESG Index is developed in cooperation with S&P Dow Jones Indices and the Hawkamah Institute for Corporate Governance in the UAE (Hawkamah). It is supported and approved by the UAE Securities and Commodities Authority (SCA).
“The appropriate implementation of best practices of corporate governance, disclosure and transparency as well as environmental and social commitment is essential to boost UAE markets’ competitiveness, attract further investments and sustain growth noting that investment institutions across the world are increasingly factoring these matters in investment decisions process,” Essa Kazim, Chairman of the DFM said.
The inaugural index sample consists of 20 listed companies and provides 5 years back tracking, enabling market participants to access index performance since 2015.
Dubai Financial Market (DFM) has launched the UAE Index for Environment, Social and Governance (ESG) to encourage listed companies in the UAE to expand embracing ESG best practices.
The S&P/Hawkamah UAE ESG Index is developed in cooperation with S&P Dow Jones Indices and the Hawkamah Institute for Corporate Governance in the UAE (Hawkamah). It is supported and approved by the UAE Securities and Commodities Authority (SCA).
“The appropriate implementation of best practices of corporate governance, disclosure and transparency as well as environmental and social commitment is essential to boost UAE markets’ competitiveness, attract further investments and sustain growth noting that investment institutions across the world are increasingly factoring these matters in investment decisions process,” Essa Kazim, Chairman of the DFM said.
The inaugural index sample consists of 20 listed companies and provides 5 years back tracking, enabling market participants to access index performance since 2015.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Brent crude rises after coronavirus drags it to lowest since 1999 - Reuters
Brent crude rises after coronavirus drags it to lowest since 1999 - Reuters:
Brent crude oil sank below $16 a barrel to its lowest since 1999 on Wednesday, before recovering slightly on the prospect of extra pledges to cut output in addition to a pact by major producers to limit supplies.
International benchmark Brent crude LCOc1, which fell 24% in the previous session, touched $15.98 a barrel on Wednesday, hitting its lowest since June 1999. By 1225 GMT, it had recovered to $21.16, up $1.83 or 9.5%.
U.S. West Texas Intermediate CLc1 was up $2.26 or 20%, at $13.83.
Analysts said the price levels were now so low they would a big impact the amount of oil companies could produce without facing deep losses.
Brent crude oil sank below $16 a barrel to its lowest since 1999 on Wednesday, before recovering slightly on the prospect of extra pledges to cut output in addition to a pact by major producers to limit supplies.
International benchmark Brent crude LCOc1, which fell 24% in the previous session, touched $15.98 a barrel on Wednesday, hitting its lowest since June 1999. By 1225 GMT, it had recovered to $21.16, up $1.83 or 9.5%.
U.S. West Texas Intermediate CLc1 was up $2.26 or 20%, at $13.83.
Analysts said the price levels were now so low they would a big impact the amount of oil companies could produce without facing deep losses.
Whether OPEC+ formally agrees, deeper oil cuts now look inevitable - Reuters
Whether OPEC+ formally agrees, deeper oil cuts now look inevitable - Reuters:
Whether or not OPEC+ oil producers formally agree to extra oil output curbs, rapidly filling storage capacity and plummeting demand due to the coronavirus crisis may force them to cut more.
With crude consumption collapsing, the Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, is due to implement a deal to cut supply by a record 9.7 million barrels per day (bpd) from May 1.
But that unprecedented deal to withdraw about 10% of global supply already looks inadequate when demand has plunged by as much as 30% and the world is possibly just weeks away from running out of storage space for the surplus.
Vopak, the world’s biggest independent storage company, said on Tuesday its tanks were almost full.
Whether or not OPEC+ oil producers formally agree to extra oil output curbs, rapidly filling storage capacity and plummeting demand due to the coronavirus crisis may force them to cut more.
With crude consumption collapsing, the Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, is due to implement a deal to cut supply by a record 9.7 million barrels per day (bpd) from May 1.
But that unprecedented deal to withdraw about 10% of global supply already looks inadequate when demand has plunged by as much as 30% and the world is possibly just weeks away from running out of storage space for the surplus.
Vopak, the world’s biggest independent storage company, said on Tuesday its tanks were almost full.
MIDEAST STOCKS-Most major Gulf markets ease on oil slump, poor earnings | Nasdaq
MIDEAST STOCKS-Most major Gulf markets ease on oil slump, poor earnings | Nasdaq:
Saudi Arabia's benchmark stock index .TASI eased 0.4%, led by a 2.5% fall in petrochemical firm Saudi Basic Industries 2010.SE and a 0.7% drop in National Commercial Bank 1180.SE.
However, Saudi Telecom 7010.SE edged up 0.1% after reporting a 5.9% rise in first-quarter profit.
In Dubai, the benchmark stock index .DFMGI slipped 0.4%, with Emirates Integrated Telecommunications DU.DU falling 2.9% after the firm posted a lower quarterly net profit.
The Abu Dhabi index .ADI slipped 0.2%, hurt by a 2.3% decline in First Abu Dhabi Bank FAB.AD, the country's largest lender.
But the index's losses were capped by a 2.7% gain in Emirates Telecommunications ETISALAT.AD despite reporting a fall in first-quarter profit.
Qatar's index .QSI gained 0.8%, buoyed by a 2.2% rise in Qatar National Bank QNBK.QA, while Mesaieed Petrochemical MPHC.QA climbed 4.1%.
Saudi Arabia's benchmark stock index .TASI eased 0.4%, led by a 2.5% fall in petrochemical firm Saudi Basic Industries 2010.SE and a 0.7% drop in National Commercial Bank 1180.SE.
However, Saudi Telecom 7010.SE edged up 0.1% after reporting a 5.9% rise in first-quarter profit.
In Dubai, the benchmark stock index .DFMGI slipped 0.4%, with Emirates Integrated Telecommunications DU.DU falling 2.9% after the firm posted a lower quarterly net profit.
The Abu Dhabi index .ADI slipped 0.2%, hurt by a 2.3% decline in First Abu Dhabi Bank FAB.AD, the country's largest lender.
But the index's losses were capped by a 2.7% gain in Emirates Telecommunications ETISALAT.AD despite reporting a fall in first-quarter profit.
Qatar's index .QSI gained 0.8%, buoyed by a 2.2% rise in Qatar National Bank QNBK.QA, while Mesaieed Petrochemical MPHC.QA climbed 4.1%.
Oil hits lowest this century as coronavirus crisis hammers demand - Reuters
Oil hits lowest this century as coronavirus crisis hammers demand - Reuters:
Oil slumped to less than $16 a barrel on Wednesday, hitting its lowest since 1999, with the market awash with excess supply as the economic fallout from the coronavirus pandemic hammers demand for fuels.
A glut has been building since OPEC+, led by Saudi Arabia and Russia, failed to renew output cuts last month. OPEC+ agreed new curbs this month, but government lockdowns to contain the pandemic have cut fuel demand more steeply.
Brent crude LCOc1, which fell 24% in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down 62 cents, or 3.2%, at $18.71 by 0950 GMT.
U.S. West Texas Intermediate CLc1 was down 60 cents, or 5.2%, at $10.97.
Oil slumped to less than $16 a barrel on Wednesday, hitting its lowest since 1999, with the market awash with excess supply as the economic fallout from the coronavirus pandemic hammers demand for fuels.
A glut has been building since OPEC+, led by Saudi Arabia and Russia, failed to renew output cuts last month. OPEC+ agreed new curbs this month, but government lockdowns to contain the pandemic have cut fuel demand more steeply.
Brent crude LCOc1, which fell 24% in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down 62 cents, or 3.2%, at $18.71 by 0950 GMT.
U.S. West Texas Intermediate CLc1 was down 60 cents, or 5.2%, at $10.97.
Oil Price Rout Doesn't Predict Future for Crude Market - Bloomberg
Oil Price Rout Doesn't Predict Future for Crude Market - Bloomberg:
From Drowning in Oil, to Peak Oil, and Back
We have a new narrative, and it has us floating inexorably to hell, borne on a flood of oil. That, at least, is the story being offered to explain why markets have turned decidedly risk-averse again, with U.S. stocks suffering their worst day since April 1. Meanwhile bond yields are falling, with the 10-year Treasury below 0.6% once more. Put these together and stocks are lagging behind bonds by 33% since they peaked in January:
As stocks’ rally had looked premature and overdone, this isn't necessarily bad news. Further, it is interesting to look at a radiography of how the U.S. market behaved, using the Bloomberg factor analysis function (FTW on the terminal). It is too soon to build much on this, but for the first time in a long while, the strongest-performing factor Tuesday was value, while large companies and stocks that had momentum behind them did worst:
From Drowning in Oil, to Peak Oil, and Back
We have a new narrative, and it has us floating inexorably to hell, borne on a flood of oil. That, at least, is the story being offered to explain why markets have turned decidedly risk-averse again, with U.S. stocks suffering their worst day since April 1. Meanwhile bond yields are falling, with the 10-year Treasury below 0.6% once more. Put these together and stocks are lagging behind bonds by 33% since they peaked in January:
As stocks’ rally had looked premature and overdone, this isn't necessarily bad news. Further, it is interesting to look at a radiography of how the U.S. market behaved, using the Bloomberg factor analysis function (FTW on the terminal). It is too soon to build much on this, but for the first time in a long while, the strongest-performing factor Tuesday was value, while large companies and stocks that had momentum behind them did worst:
#Saudi Aramco picks HSBC, Japan's SMBC for $10 billion loan: sources - Reuters
Saudi Aramco picks HSBC, Japan's SMBC for $10 billion loan: sources - Reuters:
Saudi Aramco has chosen HSBC and Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to coordinate talks with other banks for a loan of about $10 billion the oil giant plans to raise, sources said.
The jumbo financing would help the company back its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC) from Saudi Arabia’s Public Investment Fund, a deal worth almost $70 billion, sources told Reuters last week.
Aramco did not comment on the banks choice but said it continues to review its financial options “as part of its normal course of business, while prudently preserving its pristine balance sheet and its resilience.”
Saudi Aramco has chosen HSBC and Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to coordinate talks with other banks for a loan of about $10 billion the oil giant plans to raise, sources said.
The jumbo financing would help the company back its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC) from Saudi Arabia’s Public Investment Fund, a deal worth almost $70 billion, sources told Reuters last week.
Aramco did not comment on the banks choice but said it continues to review its financial options “as part of its normal course of business, while prudently preserving its pristine balance sheet and its resilience.”
#UAE telco Etisalat reports slight drop Q1 profit on increased costs - Arabianbusiness
UAE telco Etisalat reports slight drop Q1 profit on increased costs - Arabianbusiness:
UAE-based telecoms operator Etisalat Group posted AED 2.2 billion ($598.9m) in net profit for the first three months of the year, a 2% drop on same quarter last year.
In a statement, Etisalat said that total earnings before interest, tax, depreciation and amortisation (EBITDA) of AED 6.7 billion ($1.8bn), a 1.5 percent increase from the same time period a year before.
The decrease in profit was attiributed to to higher depreciation and amortisation expenses, higher forex losses, and higher financing costs.
UAE-based telecoms operator Etisalat Group posted AED 2.2 billion ($598.9m) in net profit for the first three months of the year, a 2% drop on same quarter last year.
In a statement, Etisalat said that total earnings before interest, tax, depreciation and amortisation (EBITDA) of AED 6.7 billion ($1.8bn), a 1.5 percent increase from the same time period a year before.
The decrease in profit was attiributed to to higher depreciation and amortisation expenses, higher forex losses, and higher financing costs.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Oil prices hit 1990s low as coronavirus outbreak sinks demand - Reuters
Oil prices hit 1990s low as coronavirus outbreak sinks demand - Reuters:
Oil prices slumped again on Wednesday, with Brent falling to the lowest since 1999, as the market struggled with a massive crude glut amid a collapse in demand for everything from gasoline to jet fuel caused by the coronavirus outbreak.
Brent crude LCOc1, which fell 24% in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down $2.37, or 12%, at $16.96 at 0511 GMT.
West Texas Intermediate CLc1 was down 51 cents, or 4.4%, at $11.06 a barrel.
The falls follow two of the wildest days in the history of oil trading, as worldwide supply looks set to overwhelm demand for months to come and current production cuts fall far short of offsetting that glut.
Oil prices slumped again on Wednesday, with Brent falling to the lowest since 1999, as the market struggled with a massive crude glut amid a collapse in demand for everything from gasoline to jet fuel caused by the coronavirus outbreak.
Brent crude LCOc1, which fell 24% in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down $2.37, or 12%, at $16.96 at 0511 GMT.
West Texas Intermediate CLc1 was down 51 cents, or 4.4%, at $11.06 a barrel.
The falls follow two of the wildest days in the history of oil trading, as worldwide supply looks set to overwhelm demand for months to come and current production cuts fall far short of offsetting that glut.