WASHINGTON (dpa-AFX) - Crude oil prices plummeted to the lowest level in several years on Friday after the Organization of the Petroleum Exporting Countries' proposal for deeper output cuts was rejected by it allies.
Also, mounting worries about the economic impact of the coronavirus outbreak and an imminent drop in energy demand weighed on oil prices.
West Texas Intermediate Crude oil futures for April ended down $4.62, or about 10.1%, at $41.28 a barrel, the lowest settlement since August 2016. The contract touched a low of $41.11 a barrel.
Brent crude futures declined to a low of $45.18 a barrel, the lowest level since June 2017.
The meeting between OPEC and its allies concluded today with the cartel and its allies failing to agree on the former's proposal of reducing production by another 1.5 million barrels per day from April to end of this year.
The meeting concluded with the participants deciding to continue with the existing level of production cut till the end of this month. The OPEC+ has decided to meet in early June to review the situation.
Baker Hughes reported today that the number of active U.S. rigs drilling for oil rose by four to 682 this week, after seeing a decline of one rig in the previous week. The total active U.S. rig count has now climbed to 793.
Meanwhile, according to reports, over 100,000 infections due to the novel coronavirus have been confirmed worldwide, and more than 3,300 people have been killed due to the outbreak.
The number of infections due to the virus has soared in Italy, France, Greece and Iran. A cruise ship has been stationed off the Californian coast to test passengers showing symptoms of the disease.
The Asian Development Bank said today that the coronavirus outbreak will cut global growth by 0.1% to 0.4% and it will have a significant impact on developing Asian economies through weak domestic demand, tourism, trade and production linkages and supply disruptions.
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