Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus
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Earlier, Saudi Arabia had engaged in a price war with Russia as oil inventories grew making markets nervous
International oil prices fell to a new low tanking 40 per cent to $11 a barrel as steep fall in demand due to the coronavirus epidemic rattled the oil market.
Oil prices reached the lowest point since 1998. The fall in oil price has been largely due to a fall in demand as businesses remain shut and several countries remain in lockdown driving down demand.
Earlier, Saudi Arabia had engaged in a price war with Russia as oil inventories grew making markets nervous but as the situation deteriorated Moscow and Riyadh decided to cut production by almost 10 million barrels a day to boost virus-hit markets but it has had little effect with the glut in the market and low demand.
The US Energy Information Administration had said earlier that crude inventories in the US rose by 19.25 million barrels last week challenging the already precarious situation as oversupplied markets continue to witness decline in oil prices.
World markets have also been hit with the epidemic shutting down the US and Europe with large parts of Asia also in lockdown.
Stocks in Tokyo closed lower on Monday as virus cases continued to rise in Japan. Hong Kong also closed with losses with the Hang Seng Index dropping 0.21 per cent, or 49.98 points.