U.S. oil prices fell to their lowest level in over 20 years on Monday, according to a comparison by the Financial Times, amid a global decline in demand because of the coronavirus-related restrictions and lockdowns. The U.S. oil benchmark, West Texas Intermediate (WTI) tumbled by around one fifth after Asian and European markets opened on Monday, falling to less than $15 a barrel. The tumbling U.S. oil prices came despite a relatively calm start into the week for European stocks and despite a less severe fall of international oil benchmark, Brent crude.
Analysts cited the looming expiry of WTI’s May futures contract as the primary reason for Monday’s falling U.S. oil prices, according to CNBC, meaning that the current drop is expected to be at least partially temporary. But the extent of Monday’s price drop reflected a grim outlook for oil producers in the United States and elsewhere. It also raised concerns that a deal to cut global crude supply — backed by the Organization of the Petroleum Exporting Countries (OPEC) and agreed earlier this month — might fail to prevent a prolonged price fall.