Brent plunges to its lowest level since 2002
US, WASHINGTON (ORDO NEWS) — World benchmark crude prices plunged Brent mix on Monday to their lowest level in nearly 18 years and US crude fell briefly from $ 20 a barrel as concerns grew that public isolation measures around the world to tackle the outbreak of the Corona virus could last for months and that Fuel demand will continue to decline.
The Corona pandemic is expected to cause at least a 20 percent drop in fuel demand around the world as governments take steps to limit the spread of the virus.
Brent contracts to the close of the trading session ended at a low of $ 2.17, or 8.7 percent, to settle at the settlement of $ 33.76 a barrel, its lowest close since November 2002.
US West Texas Intermediate crude futures fell $ 1.42, or 6.6 percent, to $ 20.09, the lowest close since February 2002.
Analysts said that the price of oil is currently very low, which makes the continuation of the work of many companies unprofitable, and producers who have high costs of production will have no choice but to stop production, especially in light of the storage warehouses being almost full capacity.
Goldman Sachs analysts said demand from passenger and airline traffic, which accounts for around 16 million barrels per day of global consumption, may never return to previous levels.
On the other hand, US President Donald Trump and his Russian counterpart, Vladimir Putin, agreed during a phone conversation on Monday that senior energy officials of the two countries would meet to discuss the sharp drop in global oil markets.
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