Crude Oil Prices Plunge as Demand Continues to Evaporate
Panic amongst market leaders concerning the fall of crude oil prices raised on Friday, March 13, 2020, when Brent crude substantiated the biggest weekly price drop for more than 7 percent for the third day in a row and depicted a tentative fall up to an astounding rate of 28 percent since 1991 during the Gulf War. Not just that, the worldwide outbreak of coronavirus is also depleting the US crude demand, because of which the States is losing its grip from over the market. The US West Texas Intermediate (WTI) has estimated that the company, which is already down to 66 percent, is all set to drop to a mindboggling rate dip of 25 percent this coming week. The worst part is that when the global economy is already broken, Saudi Arabia is flooding low-priced oil into the market, which is equivalent to pouring oil into the fire and intensifying the pressure on prices after the collapse of a price supporting agreement with Russia last week. Referring to the present global scenario, the Eurasia group responded by saying that the surge in Saudi Arabian and Russian oil production could lead to a supply overhang of 4 million barrels per day, which was equivalent to 4 percent of daily global consumption before the coronavirus outbreak took place in China.