Crude futures slump 7pc, WTI drops below $20/bl
Benchmark US crude futures have fallen by more than 7pc to below $20/bl, as the expiry of the Opec+ production restrain deal and plunging demand from the coronavirus sent prices sharply lower.
The Nymex front-month May WTI crude futures contract fell as low as $19.92/bl today, down by 7.4pc from its close on 27 March. Nymex WTI crude futures last settled below $20/bl in February 2002.
The front-month May Ice Brent crude futures contract fell by as much as 7.6pc to $23.03/bl.
Futures were hit by the prospect of a worsening supply glut ahead of tomorrow's expiry of the Opec+ output restraint agreement, which will leave signatories to the pact free to supply as much as they choose. Saudi Arabia has said it is not talking with Russia about reducing oil output.
Demand has fallen drastically, with refiners around the world cutting runs as the coronavirus slashes oil demand and erodes products margins.
The introduction of stimulus measures by governments across the globe, including the approval of a massive relief bill by the US congress, failed to support market sentiment.
By Fabian Ng
source: Argus Media
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