Finance News20 Apr 2020 09:21
LONDON BRIEFING: Crude Prices Slump As Market Called "Awash In Oil"
Mon, 20th Apr 2020 08:11Alliance News
(Alliance News) - Oil prices collapsed to more than two-decade lows on Monday as traders grow concerned that storage facilities are reaching their limits, AFP reported.
US crude benchmark West Texas Intermediate briefly plunged almost 20% to below USD15 – its lowest since 1999 – as stockpiles continue to build owing to a crash in demand caused by the COVID-19 pandemic.
Analysts said this month's agreement between top producers to slash output by 10 million barrels a day was having little impact on the oil crisis because of lockdowns and travel restrictions that are keeping billions of people at home.
They said the physical crude market is "awash with oil". WTI was hit particularly hard as its main US storage facilities in Cushing, Oklahoma, were filling up.
AxiCorp's Stephen Innes said: "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."
Brent oil was down by a dollar from late Friday's quote, sitting just above USD27.
However, both Royal Dutch Shell and BP shares started Monday slightly higher, as equities markets were lifted by countries in Europe begining to ease their lockdown restrictions.