Oil prices dive by 20% amid Covid-19 global impact

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.