Hong Kong: Oil prices fell to a two-decade low on Monday, as traders are increasingly worried that storage facilities are about to reach their limits, and the stock market is mixed. There are some signs that the coronavirus may have peaked in Europe and the United States.
The US crude oil benchmark West Texas Intermediate crude oil briefly fell by nearly 20% and fell below $ 15 (the lowest level since 1999), due to the collapse in demand caused by the COVID-19 pandemic and the continued increase in inventories.
Analysts say that the agreement between top producers this month to reduce daily output by 10 million barrels due to blockades and travel restrictions has left billions of people at home, with little impact on the oil crisis.
As WTI’s main US storage facility in Cushing, Oklahoma, is about to fill up, it has been particularly hard hit.
ANZ said “crude oil prices remained under pressure, as projections of weaker demand weigh on sentiment”.
“Despite the OPEC+ alliance agreeing to an unprecedented cut in output, the physical market is awash with oil,” it said, referring to the Organization of the Petroleum Exporting Countries and non-OPEC partners.
And AxiCorp’s Stephen Innes added: “It’s a dump at all cost as no one… wants delivery of oil, with Cushing storage facilities filling by the minute.
“It hasn’t taken long for the market to recognise that the OPEC+ deal will not, in its present form, be enough to balance oil markets.”
As the government began to consider how and when to ease the blockade that had severely damaged the global economy, stock traders became more active.
Italy, Spain, France and the United Kingdom reported a decline in daily deaths and a decline in infection rates.