• Wednesday, May 22, 2024
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Oil falls to $25.96 in New York, lowest since May 2003

Oil falls to $25.96 in New York, lowest since May 2003

United States West Texas Intermediate (WTI) crude Oil has dropped to the lowest levels since 2003, below $26 per barrel.

On Wednesday, WTI plunged 3.34 percent to $25.96 a barrel on March 18, after falling to as low as $26.20 on Monday, also the lowest in four years.

Also, Brent crude was down 1.32percent, at $28.81 a barrel, after falling earlier to $28.40, the lowest since early 2016.

The coronavirus crisis is weighing on prospects for demand as people refrain from flying or driving amid lockdowns and border closures.

Several countries in Europe, such as Germany, Portugal and Spain, have tightened borders and restricted the movement of citizens.

Spain and Philippines have enforced a nationwide quarantine, while Austria was limiting people’s movement and gathering.

In Indonesia, its citizens were asked to work, study and worship from home.

Moreover, Saudi Arabia and Russia are engaged in a price war. Both major oil producers have increased production and cut prices.