• Thursday, May 30, 2024
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BusinessDay

Oil crashes below $1 a barrel, on track for biggest one-day fall on record

Oil prices stuck in limbo as uncertainty mounts

Oil prices crashes further below $1 a barrel with the threat to erase a decade of demand growth with thousands of jobs under threat as coronavirus continues to spread further.

A Bloomberg report revealed that industrial and economic activity is grinding to a halt as governments around the globe extend shutdowns due to the swift spread of the coronavirus.

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Oil has faced its own knock-on effects with a market massively oversupplied and nowhere to put physical barrels of crude. An unprecedented output deal by OPEC and allied members a week ago to curb supply is proving too little too late in the face a one-third collapse in global demand.

The soon-to-expire May contract for the U.S. oil benchmark was on track Monday to finish in single digits for the lowest close and biggest one-day plunge on record for a front-month contract, reflecting a growing glut of crude and a lack of storage space.