Oil prices fell to a 21-year low on Sunday night as uncertainty over a supply glut intensified.
Commodity prices have continued to fall in the past week despite Opec and its Allies agreeing to a historic production cut to support prices.
WTI crude oil fell 21 per cent to $14.47 a barrel, while Brent fell 4.2 per cent to $26.91 a barrel, its low for the day.
Oil prices fell to their lowest level in 21 years on Sunday.The latest sharp sell-off in the commodity comes amid rising uncertainty over excess oil inventories.Global oil demand has fallen sharply since the coronavirus outbreak.
WTI crude oil fell as much as 21 per cent to $14.47 a barrel.The stock recovered some of its losses, falling about 15% to $15.60 at 9:40 p.m. New York time.In contrast, Brent crude was a relatively small performer, falling 4.2 per cent to $26.91 a barrel, its intraday low.
Oil prices have continued to fall despite Opec and its Allies agreeing to the largest-ever production cuts to support prices.With the coronavirus making society dysfunctional, investors remain unconvinced that production cuts will offset falling demand for the commodity.
The recent sharp fall in WTI crude prices relative to longer-term contracts has raised concerns about inventories.That dynamic is playing out amid fears that a key storage centre in Cushing, Oklahoma, is about to run at full capacity.
