Oil prices plummeted more than 13% to a nearly 18-year low on Wednesday, as the coronavirus pandemic continued to sap demand for crude and as rising worries about a global recession were leading to fears of longer-term demand disappearance.
U.S. West Texas Intermediate crude fell 13.3%, or $3.58, to trade at $23.37 per barrel, its lowest level since April 2002.
International benchmark Brent crude shed 7.8%, or $2.25, to trade at $26.48 U.S., its lowest level since Sept. 2003.
WTI and Brent crude are on pace for their worst month ever, each down 45%.
Oil is getting pounded on both the supply and demand side. A slowdown in worldwide travel and business activity is weighing on demand, just as powerhouse producers Saudi Arabia and Russia prepare to ramp up production.
As worldwide demand grinds to a halt, the production cuts the Organization of the Petroleum Exporting Countries currently in place expire at the end of the month, meaning nations will soon be allowed to pump as much as they please.
