Oil prices slipped on Monday as fears over weaker demand for crude intensified amid the rapid spread of the coronavirus worldwide.
The West Texas Intermediate for May delivery was down 1.42 U.S. dollars to settle at 20.09 dollars a barrel on the New York Mercantile Exchange. That was the lowest front-month contract finish since February 2002, according to Dow Jones Market Data.
Brent crude for May delivery decreased 2.17 dollars to close at 22.76 dollars a barrel on the London ICE Futures Exchange.
"Estimates for the demand side are being revised downwards on an almost daily basis, while on the supply side there is still no sign of any reconciliation between Saudi Arabia and Russia," Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Monday.
Oil demand could decline by as much as 20 million barrels per day, or 20 percent, this year, given that three billion people around the world are locked down, International Energy Agency Executive Director Fatih Birol warned last week.
Earlier this month, a failure to strike a deal on oil production cuts between the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, had sparked fears of a possible price war.
Saudi Arabia, a key OPEC member, and Russia already announced a significant increase in oil production.
Editor:Cherie
