On Tuesday, the 17th of March 2020, despite a draconian turnaround of the US Stocks over optimisms of fresh Government stimulus injected by a majority of G20 economies to insulate their money markets from a coronavirus-led panic-driven sell-off, both US and UK crude had extended their losing run, while the UK crude had wrapped up the day below $30/barrel for the first time in three years and the US West Texas Intermediate crude oil futures’ prices had hit a nearly 18-year lows.
As a matter of fact, crude oil futures’ market had been witnessing a consequential repercussion of a likely symphony of demand destruction over the coming days as Saudi alongside UAE has been flooding the global crude oil market at a steep discount to grab a bigger slice of market share, while US shale alongside refiners would likely to be the heaviest hit since Russian crude holds a greater advantage amid presence of a number of loyal buyers across the globe, suggested analysts.
Concomitantly, as a number of export-oriented and highly industrialized country had imposed a sweeping lockdown of factories and businesses amid frets of coronavirus outbreak, crude oil demand concerns in a short- to intermediate-term outlook appeared to be tinkering with investors’ nerve.
Citing statistics, on Tuesday’s (March 17th) market wrap-up, UK crude futures’ prices fell by 3.29 per cent to settle down at $28.73 per barrel, while the US West Texas Intermediate crude oil futures’ prices dived as much as 6.67 per cent to settle down at $26.95 per barrel.
Meanwhile, casting further holocaust over crude oil futures’ prices over the coming days, a partner at Again Capital Management in New York said on Tuesday (March 17th), “You’re getting new demand destruction news coming at you every hour. ”