WASHINGTON (dpa-AFX) - Oil prices fell to their lowest level in more than 17 years on Monday as investors pondered over a collapse in the OPEC+ alliance affecting supply and the rapid spread of COVID-19.
Benchmark Brent crude fell 4.8 percent to $26.61 a barrel, after hitting as low as $23.03 a barrel earlier in the day - the lowest level since Nov. 15, 2002.
U.S. West Texas Intermediate (WTI) crude futures briefly dipped below $20 per barrel to their lowest level since March 20 before recovering some lost ground to trade down nearly 5 percent at $20.45 per barrel.
It is now feared that the global coronavirus shutdown could last months and demand for fuel could evaporate further.
British officials warned that normal life may not return to the U.K. for up to six months.
The White House on Sunday sent out a dire warning, saying that a total of 100,000 to 200,000 Americans could eventually succumb to the virus in a worst-case scenario in two weeks coinciding with Easter weekend.
'It is clear that we have entered a recession' that will be worse than the one in 2009, following the global financial crisis, IMF chief Kristalina Georgieva said Friday.
An unrelenting price war between Saudi Arabia and Russia has compounded the impact of the pandemic.
On Friday, Saudi Arabia said it was not in talks with Russia to stabilize oil markets despite Washington stepping in to pressure both sides to end the price war.
As storage capacities are almost full, analysts say that higher cost producers will have no choice but to shut production.
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