WTI crude prices renewed its historical minimum and for the first time in eighteen years decreased to the level of 18 dollars per barrel.
It is reported portal “Commander in chief”.
Analysts believe that the main reason for this decrease in the cost of oil is a consequence of the unrest in the fuel market caused by the opposition of a number of countries. It is now known that the cost of the may futures of WTI fell below $ 18 per barrel. A similar situation is recorded for the first time since 2002, when I observed something similar.
On Friday evening, April 17, the cost of may futures WTI reached a low of 17.46 per barrel. In the course of trading the price of WTI retraced and reached 18.46 per barrel.
Goldman Sachs analysts predict a further decline in oil prices despite the end of the oil war and the largest in the history of the decline of oil production. The main reason for this decline, analysts say significant damage to demand in April-may 2020 pandemic coronavirus infection.
The international energy Agency (IEA) forecasts a drop in oil demand in April 2020, 29 million barrels a day in respect of restrictive measures adopted in the world because of the pandemic, COVID-19. No reduction in oil production will not be able to fully compensate for the short-term market decline.