Coronavirus pushes oil to the lowest level since 2002

US, WASHINGTON (ORDO NEWS) — The massive spread of coronavirus has led to stagnation in the global economy and reduced energy consumption. Combined with the price war between Saudi Arabia and Russia, this led to a drop in oil prices by about 60%, German magazine Der Spiegel reports. Now the prices for this energy resource are at the lowest level since November 2002.

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Coronavirus caused stagnation in the economy, which led, inter alia, to lower energy consumption, writes German magazine Der Spiegel. Because of this, oil suppliers now have a hard time: oil prices are currently at their lowest level since November 2002.

As noted in the article, by the beginning of the week, oil prices had dropped significantly due to the economic consequences of the coronavirus epidemic. A barrel (159 L) of Brent brand is now as cheap as it has not been since November 2002. Then, oil prices were under pressure due to the attacks of September 11, 2001. Now the additional pressure on the prices for energy raw materials is exerted by the price war between major oil suppliers – Saudi Arabia and Russia.

On Monday morning, the price of a barrel of Brent crude oil fell almost 8% and reached the level of $ 23.03, rising after that only to the level of $ 23.50. This means that since February 24, when the large-scale spread of the new coronavirus reached the financial markets, Brent has fallen by almost 60%.

The price of a barrel of WTI American crude by the start of trading on Monday fell 7.4% to $ 19.92, dropping below the $ 20 milestone, as it once was during the crisis caused by coronavirus. The total drop in the price of a barrel of WTI crude oil since the outbreak of the epidemic and the crisis with coronavirus amounted to just over 60%, German magazine Der Spiegel reports.

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