US crude oil plunges to its lowest level in 18 years

US, WASHINGTON (ORDO NEWS) — Oil prices tumbled on Wednesday, and US crude futures fell to an 18-year low while Brent crude hit a 16-year low, after Goldman Sachs said stoppages to tackle the coronavirus increased the chances of the biggest decline Absolutely annual in oil demand.

Goldman Sachs said, “The collapse of oil demand due to the spread of the Corona virus is increasingly severe,” expecting the price of crude to drop to $ 20 a barrel in the second quarter.

Brent crude was trading down $ 2.68, or 9.3 percent, at $ 26.05 a barrel, after falling to $ 26.65, the lowest level since 2003.

By 1508 GMT, US crude fell four dollars, or 15 percent, to $ 22.95 a barrel. At the lowest level in the session, it recorded the lowest price since March 2002.

And the previous time that oil was traded from those low levels when China was in the process of starting its rise as a global economic superpower, which pushed global oil consumption to record highs at a later time.

Goldman Sachs said in a report on Wednesday that both crude contracts were on the way to a seasonal decline of about 60 percent, the largest loss since at least the 1980s.

Demand is beginning to be affected by official statistics, as the Japanese Trade Bureau said on Wednesday that crude imports in the world’s third largest economy fell 9 percent in February, compared to the same month a year ago.

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