Just turn the tap further to the left.
Oil Plunges to More Than 18-Year Low in Glutted Market
Despite a near 10-million-barrel-per day production cut agreed on Sunday by the Organisation of the Petroleum Exporting Countries and its allies, crude prices continued to fall this week on concerns that actual loss of demand to the pandemic could be as high as 30 million bpd.
Adding to that dilemma, U.S. crude supplies have climbed for 12 weeks in a row, with the increase of 19.2 million barrels reported by the Energy Information Administration for the week ended April 10 the largest weekly rise on record.
The supply gains come as demand is expected to see a record drop this year amid efforts to reduce the spread of COVID-19. The International Energy Agency estimated a drop in demand of 9.3 million barrels a day this year, equivalent to a decade’s worth of growth.