American crude plunges 20% below $ 15

0
79


On Monday, the price of a barrel of US crude fell by 20% to below $ 15 in the Asian market, the lowest level in two decades, in a development resulting from the decline in global demand with the spread of the “Covid 19” epidemic.
The West Texas barrel fell by more than 18.7% to $ 14.84 in the first Asian trade, while Brent North Sea barrel fell 1.5% to $ 27.64.
In recent weeks, oil markets have fallen to their lowest levels in nearly 20 years, amid closures and travel bans around the world, which strongly affect demand.
The crisis was complicated after Saudi Arabia, a member of the Organization of Petroleum Exporting Countries, launched a price war with Russia, which is not a member of the organization.
The two countries succeeded in reaching an agreement early in the month in which they agreed – with other countries – to reduce production by about 10 million barrels per day to stimulate the markets.
However, prices continued to drop sharply, with analysts estimating that the cut was insufficient to offset the strong decline in the demand caused by the epidemic.
“AZZ” announced in a note: “The prices of crude oil remained under pressure because expectations of low demand cast their weight on the general atmosphere.” He added, “Although OPEC has accepted an unprecedented reduction in production, the oil market remains overwhelmed with demand.”
He expressed fear that “the capacity in storage facilities in the United States may be depleted.”
The US Energy Information Administration announced last week that its stockpiles of crude rose by 19.5 million barrels.





LEAVE A REPLY

Please enter your comment!
Please enter your name here