US crude tumbled 10.7 percent on Friday and recorded its biggest weekly drop since the Gulf War in 1991 as the epidemic of the Corona virus dried up global demand, and officials in Washington said an envoy would head to Saudi Arabia to deal with the repercussions of the oil price war between Saudi Arabia and Russia.
The week saw heavy sales over the course of four days as a growing pandemic discouraged people from driving and booking flights.
Major forecasters such as oil trade giant Vitol and energy research firm IHS Market said demand for crude could fall by as much as 10 percent.
Oil prices rose strongly on Thursday after selling for days, but the rally did not last.
American crude prices incurred a weekly loss of 29 percent, the most severe since the outbreak of the Gulf War in 1991. Brent crude fell 20 percent. The measurement crude declined for four consecutive weeks.
“As the economy continues to slow down almost to a halt, it is clear that demand crunch will grow. Whatever efforts to reduce US production and capital spending, it is not sufficient at this time,” said John Kildoff, partner at Again Capital Management in New York.
Brent crude futures fell $ 1.49 yesterday, or 5.2 percent, to settle the settlement price at $ 26.98 a barrel.
And US crude contracts for April delivery fell 2.69 dollars, or 10.7 percent, to close at 22.53 dollars a barrel. The deadline for the contract was due sooner. And the most active US crude contract for May delivery closed $ 3.28, or 12.7 percent, at $ 22.63.
American crude lost half its value in the past two weeks, and Brent fell about 40 percent, with demand shrinking due to the pandemic in conjunction with the collapse of coordinated production cuts between the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia.
