Oil becomes cheaper due to falling demand
US, WASHINGTON (ORDO NEWS) — Oil prices fell on Thursday after three days of growth amid the prospect of a rapid decline in demand due to travel bans and border closures that outweighed the hope that emergency stimulus measures in the US by $ 2 trillion would support economic activity.
Futures for Brent crude oil decreased by 1.3% to $ 27.03 per barrel to 9:27 Moscow time, on WTI – by 2.2% to $ 23.95 per barrel.
The US Senate on Wednesday unanimously supported a $ 2 trillion bill aimed at helping the unemployed and the industries affected by the coronavirus epidemic, as well as providing billions of dollars to buy urgently needed medical equipment.
But with a rapid decline in demand and an increase in production, the prospects for oil remain bleak.
According to IHS Markit, in the second quarter, global oil demand will decline by more than 14 million barrels per day, which will lead to an unprecedented increase in reserves.
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