Despite the deal by the Organization of Petroleum Exporting Countries, its allies (OPEC+) and other top oil producers, in addition to the intervention of US President, Donald Trump, the volatility of the crude oil market still continues unabated.
Available reports from oilprice.com shows that crude oil prices fell by about 5% at $28 per barrel on Wednesday, April 15, 2020. This could be attributed to persistent oversupply and the consistent fall in demand due to global lockdown caused by the coronavirus pandemic.
The Brent crude crashed by more than 5% as it sold for about $28, and the US West Texas Intermediate (WTI) crude slumped by 0.55% as it sold for $20 per barrel. Also, the Bonny light crude had an over 7% drop to sell at $24.46 per barrel.
The International Energy Agency (IEA) on Wednesday, predicted a 29 million barrel per day oil demand slump for April. The slump is to a level that has not been witnessed for over two and a half decades, and it further said that no output cut will fully make up for the decline in prices in the oil market.
(READ MORE: Crude Oil: “Historic” production cuts; Implications for Nigeria)
Some analysts have predicted more pressure with adverse effects on the oil market as long as the demand does not improve. However, with the global lockdown and restrictions at the moment, this seems like a tall order.
