The impact of the Covid-19 virus continued to wreak havoc on global markets including energy commodity prices as oil prices continued plunging as a dispute among producers in an oversupply of crude.
The international standard Brent crude dived another 20.1% by $9.50 to $35.77 per barrel on Sunday its lowest price since 2016. Benchmark U.S. crude fell $8.64 to $32.64.
This following a 10.1% drop for U.S. oil on Friday, which was its biggest loss in more than five years. Prices are falling as Saudi Arabia, Russia and other oil-producing countries continue their disputes on how much to reduce production in order to prop up prices also in light of reduced demand around the globe amid Covid-19. Demand for energy is falling as people cut back on travel around the world.
Economist are predicting that if it continues economies around the globe will start declining in already fragile markets.
This most recent plummet for oil adds another setback for financial markets worldwide. The U.S. stock market is down 12.2% since setting its record last month on major concern over how much corporate profits will fall because of COVID-19. It’s set on Monday to mark the 11th anniversary of hitting bottom after the 2008 financial crisis.