Crude Oil Prices Drop to Lowest Levels Since 2003
Oil extended its slide to the lowest level in almost 17 years as the coronavirus pandemic threatens to bring the global economy to a standstill, battering demand just as supply explodes.
Oil prices fell for a third session on Wednesday to be down about more than 17% so far this week as the outlook for fuel demand darkened amid travel and lockdowns triggered by the coronavirus epidemic.
WTI Crude oil was down $1.37 or 4.79%, at $25.96 a barrel. Whereas Brent crude was trading down 85 cents, or 2.92%, at $27.89 a barrel.
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The coronavirus crisis is weighing on prospects for demand as people refrain from flying or driving amid lockdowns and border closures.
A drop in U.S. inventories of crude, gasoline and distillates, as reported by an industry group, provided some support to prices, but the demand outlook remains grim amid a price war among major producers.
Moreover, Saudi Arabia and Russia are engaged..