Oil fell during Monday's trading to deepen its losses, reaching its lowest level in 21 years, with concern about oversupply and the weak global demand amidst the undergoing coronavirus crisis.
As of 08:04 GMT, West Texas Intermediate (WTI) crude futures traded at $23.59 per barrel, while the lowest level recorded during the session was at $22.73.
WTI crude for May delivery fell more than 17.9 percent to $14.99 a barrel, down $14.47 in earlier trading, the lowest level since March 1999, while it also fell nearly 20 percent last week.
Brent crude dipped to $27.06 a barrel, while the lowest level recorded during the session was at $26.91.
Investors remain concerned about the continued decline in oil storage capacity, which is experiencing a sharp decline in supplies as a result of a sharp decline in crude demand due to the outbreak of the Covid-19.
Measures to contain the virus have disrupted travel activity and imposed tightening of citizens' movements around the world, amid an urgent contraction of economic activity and, consequently, global oil demand.
The OPEC+ production cut agreement and other oil producers failed to allay investor concerns, amid expectations that demand fell to exceed the expected drop in supply and continued supply glut.
At the end of last week, the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC crude producers reached a preliminary agreement on reducing crude supplies over the next two years after Us President Donald Trump brokered an effort to stop the price war.
Over the weekend, OPEC+ tried to renegotiate the outcome of a historic agreement that includes a reduction of 9.7 million barrels per day within the next two months.
So far, the outbreak of Coivd-19 has claimed more than 1656,170 lives and infected more than 2.4 million 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, advanced 0.12 percent at 99.95.