The situation in the oil market is out of control as both Brent and WTI crude oil prices plunged. US crude has fallen below $20 per barrel for the first time in 18 years while WTI oil has plummeted to $19.98 per barrel which is only 50 cents higher than $19.48 in February 2002. Meanwhile, Brent crude oil futures for May sank to $23.07 per barrel while futures for June were still trading at $26.6 per barrel. Oil suppliers do not expect the situation to improve any more as the oil price war between Russia and Saudi Arabia has just started. The outlook is very pessimistic. The parties are not ready to compromise and the coronavirus pandemic is only making things worse. Apart from that, the overall oil demand forecast remains low due to transportation restrictions and the suspension of production in many countries. Moreover, the countries who wanted to purchase oil cheaper have already filled up their tanks.
