US, NEW YORK (ORDO NEWS) — Oil extended its slide in Asia, trading at near two-decade lows after production cuts agreed by top producers last week were seen barely making a dent in the demand destruction wrought by Covid-19 and increasing concerns that traders are quickly running out of room to store crude.
Futures in New York dropped as much as 5.4%, the lowest since November 2001 and following a 20% drop last week. China reported its first economic contraction in decades on Friday, a sign of how bad things could get in Europe and North America, which have yet to emerge from virus lockdown.
Near-term prices for U.S. crude are trading at huge discounts to later-dated contracts on concern the storage hub of Cushing, Oklahoma, will fill to capacity. That has seen prices disconnect from Brent futures in London.
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