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US Crude Slumps to Lowest Level
in 18 Years, Crude at $ 26.05 a Barrel
18 March 2020
Oil prices fell on Wednesday as US futures
reached their lowest levels in 18 years. Brent crude reached its lowest
level in 16 years following Goldman Sacks statement that the lockdowns
to confront coronavirus has increased the possibility of witnessing the
lowest yearly demand in history.
Goldman Sachs stated “the fall of demand on
oil due to the spread of coronavirus has been increasingly sharp” and it
expected prices to reach $ 20 a barrel in the second quarter.
Brent crude was traded at $ 26.05 a barrel,
a decline by 9.3% ($2.68) after it fell to $ 26.65 a barrel (lowest
level since 2003).
At 15:08 GMT, the US Crude fell by $
4 (15%) to $ 22.95 recording its lowest levels in the trading session
the lowest price since March 2002.
The previous time that oil was traded
at these low levels when China was in start of its rise as an economic
global superpower, which has pushed the oil consumption to record high
levels on a later time.
Goldman Sachs also stated in its
report on Wednesday that the contracts of both crudes are in their way
to seasonal decline by 60% which is, at least, the biggest losses since
the eighties of the past century.
Demand started to be impacted in
official statistics, as the Japanese Commercial Office said on Wednesday
that the crude oil imports in the third biggest global economy declined
9 percent in Feb compared to the equivalent month a year ago.