• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 47 mins US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 2 hours Something wicked this way comes
  • 3 days Permian in for Prosperous and Bright Future
  • 30 mins Why NG falling n crude up?
  • 32 mins Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 18 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!
Goldman Expects Oil To Reach $65 Next Year

Goldman Expects Oil To Reach $65 Next Year

Goldman Sachs expects Brent crude…

Oil Prices Jump On Major Hurricane-Driven Crude Draw

Oil Prices Jump On Major Hurricane-Driven Crude Draw

Oil prices reversed and pared…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

U.S. Oil Crashes Below $20 On Record Demand Plunge

WTI Crude prices tumbled early on Wednesday to below $20 a barrel, after the International Energy Agency warned of a record oil demand slump this year, adding additional bearish tilt to the market which is already digesting huge U.S. inventory builds and too-little-too-late OPEC++ actions to support prices.  

At 8:55 a.m. EDT on Wednesday, WTI Crude was trading down 1.59 percent at $19.77 and Brent Crude was tumbling to below $30 a barrel—down by 3.72 percent on the day to $28.60.  

Following the Easter holiday weekend, oil prices were volatile on Monday as the market seemed to think that Sunday’s OPEC+ decision to cut 9.7 million bpd in May and June would not go far to prevent a huge global inventory build amid crashing oil demand in the COVID-19 pandemic.  

On Tuesday, oil prices were pressured again, by a report from the International Monetary Fund (IMF) saying that the global economy will likely contract by 3 percent in 2020, due to the coronavirus outbreak and the following “Great Lockdown” which will plunge many economies into recession.

Later on Tuesday came the report of the American Petroleum Institute (API), which estimated another large crude oil inventory build of 13.143 million barrels for the week ending April 10 as demand destruction stemming from the coronavirus wears on.

Premium: A Global Oil Cartel?

On Wednesday, oil prices crumbled after the IEA issued its monthly report, saying that it expects global oil demand to plunge by a record 9.3 million barrels per day (bpd) in 2020 compared to last year.  

Even if travel restrictions are lifted in the second half of this year, demand for the whole 2020 would drop by a record level of 9.3 million bpd, “erasing almost a decade of growth,” said the agency, also warning that the historic OPEC++ deal may not be able to prevent global storage from overflowing within weeks.  

Three days after the global oil deal—described as historic by OPEC+ and the U.S.—the market has already forgotten the calculations of voluntary and forced cuts and has turned its attention again to the massive demand loss in the pandemic.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on April 15 2020 said:
    With a toxic cocktail of a global economy approaching recession if not already in recession, a glut breaking all records at an estimated 1.8 billion barrels and an estimated destruction of 30 million barrels a day (mbd) of global oil demand, is it then surprising that oil prices are crashing.

    It proves one fact staring us in the face, namely no matter how big production cuts are, they will hardly have a positive impact on oil prices as long as the coronavirus outbreak is still raging.

    What oil-consuming and oil-producing countries of the world should be doing is to implement the most stringent measures to control the outbreak and shorten the duration of the global lockdown so as to enable the economies of the world to resume their normal economic activities rather than wasting time negotiating oil production cut deals which are futile in the current circumstances.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News