This archive report was first published on 22 April 2020.
On April 22, 2020, the global energy market faced another day of turmoil as oil prices plummeted due to the ongoing coronavirus pandemic.
According to reports, Brent crude dropped by over 12 percent to below $17 a barrel, while US oil erased early gains and fell.
The sharp decline in oil prices was attributed to the reduced demand caused by the pandemic, as well as the approaching full capacity of storage facilities.
Analysts pointed out that the morning bounce in oil prices was driven by news of a teleconference between members of the OPEC and some of its allies, but the grim reality soon returned to the markets.
Prices have continued to plummet as lockdowns and travel restrictions introduced worldwide to stem the spread of the virus have severely impacted demand.
As Jingyi Pan, a market strategist with IG, noted, “The overtly bearish sentiment may well keep prices suppressed in the near-term until we find the light at the end of the tunnel with progressive resumption of halted economic activities across the globe.”
