As the coronavirus pandemic continues to impact the global stage, US oil prices crashed to a record low last night as the market continues to face a downflow in demand.
The historic plunge occurred in the wake of prices reaching their lowest in 18 years, as international markets understood that agreed output cuts by the Organization of the Petroleum Exporting Countries, Russia and other oil producers will not be enough to mitigate the decline in demand.
“It hasn't taken long for the market to recognize that the OPEC+ deal will not, in its present form, be enough to balance oil markets,” wrote Stephen Innes, chief global markets strategist at AxiCorp, in a research note.
Among worries that the Covid-induced reduction in demand will keep the oil market under pressure, the price of US oil closed at -$37.63 on Monday, before climbing above zero to reach $2.54 in Asian trade and slipping back below zero today.
