The price of a barrel of oil is suffering the sap in demand following the impact of COVID-19 and prices are at the lowest ranges since January 2016. The four-year low on Monday occurred as US stock markets plunged on fears that the worst is yet to come as the world goes into isolation, termed as social distancing. An emergency Federal Reserve interest rate cut did nothing to stem the panic and global borders are closing.
West Texas Intermediate crude for April delivery on the New York Mercantile Exchange dropped $3.03, or 9.6%, to settle at $28.70 a barrel after trading as low as $28.03 which was the lowest for a front-month contract since February 2016. The price drops are alarming and it comes at a time when we are in a price war between the Saudis and Russia.
