Oil takes a nosedive of 8 per cent after Trump’s surprise travel curb on Europe



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Oil takes a nosedive of 8 per cent after Trump’s surprise travel curb on Europe

On Thursday, the 12th of January 2020, both US and UK crude had extended their overwhelming leg of losing streak, as UK crude oil futures’ prices had poured away more than 8 per cent following US President Donald Trump’s surprise travel ban on Europe except Britain in a bid to slow down the spread of the virus outbreak.

More importantly, Trump Administration’s plan to incline a travel ban on Europe up to the 15th of April 2020 came forth shortly after the WHO (World Health Organization) had called the virus outbreak a pandemic, driving panic among the traders as the world had witnessed its last true pandemic more than 102 years earlier when a third of world’s entire population were affected by the pandemic of 1918, widely known as the infamous Spanish flu.

Apart from a panic-driven sell-off from the traders, Saudi’s move to overflood the market as part of its crude oil price war over market share had also contributed to the sharp plunge of Thursday (March 12th) market.

Citing statistics, while preparing this report, in after-market European trading hours, GMT. 18.00, UK crude was down by 7.9 per cent to $32.96 per barrel, while the US West Texas Intermediate crude futures’ prices were down by 5.6 per cent to $31.13 per barrel.