Oil prices rebound but languish near 18-year lows

Published March 31, 2020, 10:00 PM
https://business.mb.com.ph/2020/03/31/oil-prices-rebound-but-languish-near-18-year-lows/

SINGAPORE (AFP) – Oil prices clawed back some ground in Asian trade Tuesday after falling to 18-year lows, as the coronavirus pandemic brings economies worldwide to a standstill and throttles demand.

U S b e n c h m a r k West Texas Intermediate rose 2.9 percent to just over $20 a barrel while Brent crude, the international benchmark, was up 0.5 percent at nearly $23 a barrel.

In New York on Monday, prices struck their lowest levels since 2002, with WTI briefly falling below $20.
Oil markets have plunged as governments across the planet introduce lockdowns to stem the spread of the virus, hammering demand for the commodity.

About two-fifths of the globe’s population have now been confined to their homes, while the death toll has soared over 37,000, with the US suffering a serious and escalating outbreak.

The crisis has been worsened after top producers Saudi Arabia and Russia launched a price war following a row about reducing output to support virus-hit energy markets.

In its latest move to win market share, Riyadh announced Monday it would raise exports by 600,000 barrels per day to a record 10.6 million barrels per day in May.

And there are warnings that oil could sink even further as storage tanks around the world approach full capacity.