Oil suffer the most weekly loss since 1991
Shafaq News / U.S. crude decreased by 10.7 percent and recorded its biggest weekly decline since the Gulf War in 1991 as the Corona virus epidemic dried up global demand and officials in Washington said that an envoy would head to Saudi Arabia to deal with the repercussions of the oil price war between Saudi Arabia and Russia.
The week witnessed 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 that demand for crude could fall by 10 percent. Oil prices rose strongly on Thursday after selling for days, but the rise wave did not last.
American crude prices incurred a weekly loss of 29 percent, the most severe since the outbreak of the Gulf War between the United States and Iraq in 1991. Brent crude fell 20 percent. Both benchmarks fell for four consecutive weeks.
"As the economy continues to slow down almost to a halt, it is clear that demand crunch will grow," said John Kildoff, partner at Again Capital Management in New York. Whatever efforts are made to cut production in the United States and capital spending, it is not sufficient today. ”
On Friday, Brent crude futures fell $ 1.49, 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 contract deadline for Friday is due. The U.S. crude contract, the most active in 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.