Oil drops nearly 10%, breaking below $29 as demand evaporates
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Oil prices slid 10% on Monday as the acceleration in coronavirus cases worldwide, which is bringing travel and business to a standstill, further dents global demand for crude.
U.S. West Texas Intermediate crude dropped $3.03, or 9.5%, to settle at $28.70 per barrel. Earlier in the session WTI fell to a session low of $28.03 per barrel. International benchmark Brent crude fell 11%, or $3.73, to trade at $30.11. Earlier it traded as low as $29.52, its lowest level since Jan. 2016.
“The demand drop unfolding is like nothing anyone has ever witnessed,” Simmons Energy analyst Pearce Hammond said in a note to clients Sunday.
Oil is coming off what Hammond called a “horrific week” for the energy market. Both contracts posted their worst week since the financial crisis after dropping more than 23%, although prices did get a temporary boost …continued .
[Source: CNBC News]