The Oil price crash deepened on Monday as investors continue to weigh measures by governments and central banks to help shore up the global economy against the unprecedented demand shock from the fast-spreading coronavirus.
Futures in London fell as much as 6 per cent after plunging by a quarter last week – the market’s biggest weekly drop since 2008.
Travel restrictions across the globe tightened further over the weekend in efforts to contain the spread of the virus, with the US extending its travel ban to include Britain and Ireland. Australia said anyone entering the country must self-isolate for two weeks, Spain imposed a lockdown and France closed cafes and restaurants.
Brent crude slid to US$1.87, or 5.5 per cent, to US$31.98 a barrel. Futures fell 25 per cent last week to US$33.85, the largest weekly drop since December 2008. West Texas Intermediate for April delivery dropped 4.8 per cent to US$30.22 a barrel on the New York Mercantile Exchange.
The sharp slow down in activity brought on by the virus is being compounded by a potential flood of supply in April, with top producers Saudi Arabia and Russia pledging to ramp up production.
The Middle East kingdom doubled down on the war for market share last week by sending a wave of crude to Europe, Russia’s traditional market, further dimming the likelihood of a reconciliation.
