CORONAVIRUS | This after the coronavirus pandemic has slowed economic growth and oil demand.
| Crude oil prices settled below US$30 a barrel on Tuesday as the coronavirus pandemic slowed economic growth and oil demand while Saudi Arabia and Russia kept up their battle for market share.
Brent crude futures fell US$1.32 to settle at US$28.73, the first time that benchmark has settled below US$30 per barrel since 2016. West Texas Intermediate crude futures fell US$1.75, or 6.1 percent, to settle at US$26.95 a barrel. The declines occurred even as equity markets rebounded from Monday's losses, in anticipation of fiscal stimulus.
Analysts said the futures market was affected by the slump in physical markets, which suggest difficulty in moving exports due to cheap Saudi oil flooding the globe. WTI crude at East Houston, a key price of oil delivered to Houston for exports, fell below the futures price for the first time on record.
Brent's premium over WTI has narrowed sharply to 67 cents a barrel, reaching levels not seen since November 2016. The United States has said it will take advantage of low oil prices to fill its Strategic Petroleum Reserve . Other countries and companies are planning similar measures to fill storage tanks.
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