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Oil prices slump

Mar 23. 2020
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By The Nation

Oil prices dropped after many governments locked down cities to prevent Covid-19 from spreading, leading to a plunge in demand, an energy analyst at Thai Oil said today (March 23).

West Texas Intermediate (WTI) and Brent crude prices dropped. The weekly WTI crude oil price dropped sharply since 1991, when the Gulf War took place, as many governments worldwide shut cities to tackle the Covid-19 virus.

Earlier, Opec and its partners led by Russia failed to come to an agreement on cutting production, causing market uncertainty amid rising crude oil volumes, while Saudi Arabia said it was prepared to increase its production capacity to a record high of 12.3 million barrels per day and increase exports.

The US planned to send Energy Department officials to Saudi Arabia to cooperate on stabilising the oil market. In addition, officials from the US state of Texas have consulted with the Opec secretary-general on the possibility of reducing oil production.

Benzene fuel prices rose more than those of Dubai crude after benzene sales increased due to low prices. The weekly benzene fuel volume in Singapore ending on March 18 dropped by 2.94 per cent.

Diesel prices rose more than those of Dubai crude after China increased imports for April due to rising diesel fuel demand in the country.

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