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The coronavirus pandemic has been roiling oil markets. On its third worst day on record, the U.S. West Texas Intermediate crude plunged 24.4% to settle at $20.37 per barrel on Mar 18. This additionally marked the index’s lowest since February 2002. In the meantime, slipping to the lowest level since 2003, the Brent crude misplaced 14.1% to commerce at $24.67 on the identical day. Market individuals imagine that the oil market is coping with twin blows of supply and demand. On one hand, the slowdown in international airline business and fears of financial recession are leading to waning demand for crude oil. Then again, Saudi Arabia and Russia are at loggerheads and able to ramp up output.
Let’s take an in-depth take a look at the components affecting the oil markets.
Coronavirus and Oil Markets
The coronavirus-induced shutdowns have been escalating in the US, as more than 8,700 people have examined constructive and atleast 110 have died. All 50 states in the US and the District of Columbia have confirmed instances. Globally, the variety of contaminated instances…