Oil price slip to 21-year low amid low demand


US oil prices have fallen to their lowest level since 1999 as demand dries up and storage facilities struggle to cope with the surplus of oil.

The price of a barrel of West Texas Intermediate (WTI) – the benchmark for US oil – dropped 14 per cent to $15.65 in Asia trading.

while Brent crude, the benchmark used by Europe and the rest of the world, was marginally more resilient, down 0.8 per cent to $27.87 a barrel.

The oil market has faced increased pressure during the coronavirus pandemic as demand slumps. US storage facilities are also beginning to struggle to cope with the glut of oil, which has weakened prices further.

Earlier this month, Opec members and its allies agreed a deal to cut global output by approximately 10 per cent. It represented the largest cut in oil production ever.

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