As coronavirus pandemic continues to spread
its wing across the globe and oppressing global market, THE price of oil
plunged to a 21-year low on Sunday.
The commodity’s latest round of sharp selling comes as uncertainty mounts around storage for excess oil.
Demand for crude
has plummeted since the coronavirus outbreak has halted trading.
WTI crude oil plunged as much as 21 per cent
to $14.47 per barrel. It later pared losses and traded roughly 15 per cent
lower to $15.60 at 9:40 pm in New York. Brent crude losses were muted by
comparison, with the commodity sliding 4.2 per cent to $26.91 per barrel at
intra-session lows.
The price of oil has continued to slide even after OPEC and its allies agreed to the biggest-ever production cut one intended to backstop prices.
Investors remain unconvinced the cuts can offset cratering demand for the commodity as the coronavirus keeps society from operating normally. Concerns around storage come as near-term WTI crude prices trade at large discounts to longer-dated contracts.
That dynamic is
playing out amid worry that a key storage hub in Cushing, Oklahoma is nearing
capacity, according to Bloomberg.
– Agency Report