SINGAPORE | barrel of crude us fell on Monday to near 20% to less than 15 dollars the unit in Asia, its lowest level in more than two decades, due to a decline in global demand due to the pandemic of sars coronavirus.
The barrel to u.s. West Texas Intermediate (WTI) crude has tumbled more from 18.7 % to 14,84 dollars the unit in early trade as asian, while the barrel of Brent of the North sea fell by 1.5 % to 27,64 dollars per barrel.
The oil markets have plunged in recent weeks to their lowest level for almost twenty years, so that blockages and restrictions of travel in the world impact full force on demand.
The crisis has been exacerbated after the Saudi Arabia, a member of OPEC, has launched a price war with Russia, who is not a member of this organization.
The two countries have put an end to their dispute at the beginning of the month by accepting, with other countries, to reduce their production of almost 10 million barrels per day to stimulate the markets affected by the virus.
But prices have continued to fall sharply, analysts are estimating that the cuts would not be sufficient to compensate for the massive waterfalls of the demand caused by the pandemic.
“The price of crude oil remained under pressure, because the forecasts of declining demand are weighing on the general feeling,” said the bank ANZ in a note.
“Although OPEC has agreed to a reduction of unprecedented production, the market is flooded with oil,” she added in reference to the Organization of the petroleum exporting countries and partners that are not members of OPEC.
“There is the fear always that the storage facilities in the United States are not short of capacity,” says the bank.
The u.s. administration of energy information administration reported that crude inventories of the world’s largest economy increased to 19.25 million barrels last week, adding to the woes of a global market surapprovisionné.