United States crude benchmark West Texas Intermediate extended losses on Monday, falling by more than 35% to $11.24 per barrel, its lowest since 1998.
The decline was mainly driven by lack of storage space in addition to the covid19 pandemic which has ravaged demand for the commodity. Last week, the US recorded its largest weekly decline in active oil rigs in more than five years.
Oil prices have further declined due to the Saudi-Russia month-long price war. Last week’s landmark OPEC+ agreement to cut production by 10 million BPD has failed to calm the energy markets.
