Oil posts 4th straight weekly decline; US crude in steepest weekly plunge since ‘91


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Oil posts 4th straight weekly decline; US crude in steepest weekly plunge since ‘91

On Friday, the 20th of March 2020, the US West Texas Intermediate crude futures’ prices had witnessed a wobbling trickle of as much as 10.7 per cent and reported its steepest weekly decline since the ages of Gulf war in 1991 as worries over a coronavirus pandemic had been driving away demand optimisms, while a crude oil price war triggered by a breakdown of three-year long OPEC+ pact last week had withered crude oil futures’ price outlook further.

Notably, US Shale requires crude oil prices to charter above $40 per barrel to stay profitable and Saudi needs a crude oil price above $30 per barrel, while Russian crude drillers could cope up with a $25-$30 per barrel crude oil prices to garner in the greens, an industry analysts’ poll had revealed earlier this year.

Nonetheless, this week had witnessed four days of en masse sell-off pressure amid demand concerns as a global-scale coronavirus pandemic had already led to a stagnation of industrial activities in most of the G20 nations, meanwhile an aviation industry hit followed by an international quarantine measure adopted by the global economic majors had added to further investors’ woes.

In tandem, US West Texas Intermediate crude oil futures’ prices had dived as much as 29 per cent this week, remarking its worst weekly plunge since the beginning of US-Iraq Gulf war in the 1991, while UK crude futures’ prices had posted a weekly decline of 20 per cent.

Meanwhile, adding that the latest leg of demand destruction would highly likely to follow further pessimism as the coronavirus outbreak had already spanned across the five continents, a partner at Again Capital Management in NY, John Kilduff said on Friday (March 20th), “With the economy continuing to grind more and more to a halt, it’s clear the demand destruction is continuing to grow.

Whatever efforts are being made to cut production in the U.S. and capital expenditures, it’s not enough right now. ” Citing statistics, on Friday’s (March 20th) market wrap up, UK crude futures’ prices were plunged 5.2 per cent to settle down at $26.98 per barrel, while the US West Texas Intermediate crude oil futures’ scheduled to be expired on April, tumbled as much as 10.7 per cent to wind up the day at $22.53 a barrel.