The cost of US oil has tumbled to a level unheard of since 1999, as request evaporates and capacity runs out.
The cost of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, dropped 14% to $15.65 in Asia exchanging on Monday.
The oil showcase has gone under extraordinary weight during the coronavirus pandemic with a colossal droop sought after.
US storerooms are presently battling to adapt to the excess of oil, debilitating costs further.
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The oil business has been battling with both tumbling request and in-quarreling among makers over diminishing yield.
Prior this month, Opec individuals and its partners at long last concurred a record arrangement to cut worldwide yield by about 10%. The arrangement was the biggest sliced in oil creation ever to have been concurred.
Be that as it may, a few experts said the slices were not large enough to have any kind of effect.
“It hasn’t taken long for the market to recognise that the Opec+ deal will not, in its present form, be enough to balance oil markets,” said Stephen Innes, boss worldwide market strategist at Axicorp.
In the interim, concern keeps on mounting that storerooms in the US will come up short on limit, with reserves at Cushing, the primary conveyance point in the US for oil, rising practically half since the beginning of March, as indicated by ANZ Bank. “We hold some hope for a recovery later this year,” the bank said in its exploration note.
Mr Innes stated: “It’s a dump at all cost as no one, and I mean no one, wants delivery of oil with Cushing storage facilities filling by the minute.”
Brent oil, the benchmark utilized by Europe and the remainder of the world, was somewhat more fragile, down 0.8% to $27.87 a barrel.