US, WASHINGTON (ORDO NEWS) — Oil prices are dropping for the third consecutive session on Wednesday, falling during the session to a minimum of 17 years, amid concerns about the prospects for demand due to the coronavirus epidemic.
Futures for Brent crude oil decreased by 3.69% to $ 27.67 per barrel by 14:45 UTC, previously reaching the level of $ 27.56 – the lowest since the beginning of 2016.
WTI fell 6.2% to $ 25.23, previously falling to $ 25.06, the lowest since late April 2003.
Russia would like to see higher oil prices, Russian presidential spokesman Dmitry Peskov said on Wednesday, when Brent was worth less than $ 28 per barrel.
“The decline in oil demand due to the spreading coronavirus is looking more and more significant,” Goldman Sachs said in a note predicting a drop in Brent prices to $ 20 in the second quarter – a level the market has not seen since the beginning of 2002.
Goldman Sachs expects a decline in demand of 8 million barrels per day by the end of March and an annual decline in 2020 by 1.1 million barrels per day, which, according to the bank, will be the largest in history.
US oil inventories fell last week, data from the American Petroleum Institute (API) showed on Tuesday.
The decline in US stocks provided some support for prices, but the forecast for demand remains bleak against the backdrop of a price war between large producers.
Iraqi Oil Minister Tamer al-Ghadban called for an emergency meeting of OPEC and non-member states to discuss urgent measures to restore balance in the oil market, a letter he sent to OPEC on Tuesday.
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