Brent Oil’s price plunged below $ 25 a barrel amid all the turmoil in the financial markets on Wednesday night. That is the lowest level since 2003 when fear of the SARS virus in Asia gripped the world.
In addition to the corona crisis, the oil markets have been under the spell of the price war between Saudi Arabia and Russia for days.
Brent oil is the benchmark for oil from, among others, the Middle East and the North Sea. Around 6:30 PM (Dutch time), less than $ 25 a barrel was counted for the first time in ages.
On Monday, the price of Brent oil dipped below $ 30 a barrel for the first time since 2016.
In the oil markets, the daily loss for the price of Brent oil was more than 14 percent on Wednesday. US oil also plummeted in price. The price of a barrel called the West Texas Intermediate fell to about $ 20, representing a daily loss of about 25 percent.
Saudi Arabia sparked a price war about a week and a half ago after Russia refused to sign a new deal on production restrictions with OPEC oil cartel. The Arab country decided to lower the price it asks for oil and to increase production considerably from April.
Later there were concerns about the massive dropout of flights and the closing of borders because of the new coronavirus. Due to all the travel and production restrictions set, the demand for oil has been considerably lower in recent days.