Oil prices continued to fall during Tuesday's trading, with US West Texas crude falling nearly 20 percent after losing a quarter of its value yesterday amid decline in storage spaces.
As of 08:36 GMT, West Texas Intermediate (WTI) crude futures traded at $10.25 per barrel, while the lowest level recorded during the session was at $10.09, noting that during yesterday’s session WTI recorded the second lowest settlement of this most active contract ever at $12.87.
Brent crude extended its losses to trade lower at $22.16 a barrel, while the lowest level recorded during the session was at $21.93.
The strong and sustained losses in black gold prices come as concerns about the rapidly full-time storage around the world are taking off.
This was in the context of the accumulation of raw material and its non-consumption as a result of the coronavirus repercussions, which affected demand, causing a sharp oversupply.
Despite a possible drop in oil production by the OPEC+, it is believed to be not fast enough to counter the strong and unprecedented drop in demand.
Brent and West Texas are heading for their fourth consecutive monthly decline in a wave of losses that will be the first since 2017.
As oil production cuts have been swayed, US crude exploration platforms have fallen to their lowest level since July 2016, while the number of such platforms in Canada has fallen to its lowest level since at least 2000, according to Baker Hughes data.
The outbreak of Coivd-19 has claimed more than 211,770 lives and infected more than 3,074,550 people worldwide, according to calculations by Johns Hopkins University.
Meanwhile, the dollar
index, which measures the performance of six major currencies against the US
dollar, descended 0.21 percent at 99.88.