Oil prices at lowest this century as coronavirus pandemic hits global demand

LONDON – Oil prices fell to less than $16 a barrel on Wednesday, hitting its lowest since 1999, with the world’s majority population in quarantine since over 2 months due to coronavirus pandemic.

The demand for oil is at lowest while supply as previous and the storage facilities already fully utilised in major parts of the world.

The oversupply of oil has been caused consistently since OPEC+, led by Saudi Arabia and Russia, failed to renew output cuts last month.

Even though after US President Donal Trump’s interference Saudi Arabia and Russia agreed to resolve the issues and OPEC+ agreed new curbs this month, but global lockdowns led by majority countries governments in wake of coronavirus pandemic have heavily lessened fuel demand.