Oil prices fell to an 18-year low during Monday's
trading, as concerns remain over supply and demand for crude, as well as the
threat of Saudi-Russian price war by flooding the market with excess supplies.
As of 07:30 GMT, Brent crude
reached $23 a barrel, while the lowest level recorded during the session was at
$22.74. That is the lowest level since November 2002.
West Texas Intermediate (WTI)
crude futures traded at $20.23 per barrel, which is close to the lowest level
in 18 years recorded earlier this month.
Pessimism is dominating crude
investors as economic activity around the world has stalled as world economies
only seek to control the Corona virus.
According to the IMF director
Kristalina Georgieva that the world economy is already in recession, owing to
the severe damage caused by the Coronavirus.
the IEA director Fatih Birol expects oil demand to drop sharply in first
quarter due to coronavirus outbreak.
nearly 3 billion people around the world at home because of Corona, demand for
oil could drop by 20 million barrels per day, Fatih Birol said at an online
event hosted by the Atlantic Council on Thursday.
Oil prices were also negatively
affected by the price war between OPEC and Russia producers, amid increased
supplies and price cuts between the two sides, causing expectations of a glut
of supply in the market.
An official with the Saudi
Energy Ministry said the Kingdom is not holding talks with Russia to balance
oil markets, despite growing pressure from Washington to stop the turmoil.
U.S. companies closed 40 oil
rigs last week, with a sharp drop in prices that negatively affected the
feasibility of shale ore exploration.
Oil meanwhile is being hit from
both demand and supply sides, which is yielding in the undergoing price crash.
Regarding Covid-19 latest
updates, the number of global infections has risen to more than
723,000 and more than 34,000 deaths.
Meanwhile, the dollar
index, which measures the performance of six major currencies against the US
dollar, rose 0.45 percent at 98.99.