Brent Crude spills again!

The spread of Coronavirus has been getting more and more serious globally, with continuous speedy rise in the new infected cases as well as death count. This has resulted into various countries applying travel restrictions as well as suspending international or domestic travel thereby, causing a worldwide slashed in fuel demand. As a result, Brent Crude witnessed a dip in prices and was last seen trading at USD 28.36 per barrel.

It is assumed that since US scrapped its plans to buy domestic oil for its emergency reserves; it may also have resulted into the dip. US Strategic Petroleum Reserve had requested USD 3 billion in funding for the project which was later left out of USD 2 trillion stimulus package announced by the country as a relief for the economy affected by Coronavirus pandemic. Majority of the traders and oil firms expect to offload their oil below USD 20 per barrel because Coronavirus pandemic continues to savage demand amid a battle between Saudi Arabia and Russia for the market share. The lockdowns have resulted into slow trades as well.

Since the beginning of the month, Brent Crude has seen a drop by 81.94 per cent from USD 51.90 per barrel to latest USD 28.36 per barrel. In this week alone, Brent Crude prices fell by 2.25 per cent whereas, WTI Crude was USD 46.75 per barrel at the beginning of this month and has dropped significantly to current USD 22.35 per barrel. In this week alone, WTI Crude prices fell by 15.87 per cent.