Oil prices take a beating as global demand plummets
The price of crude oil continued to fall due to the Covid-19 situation, while US President Donald Trump has prohibited people from European countries from visiting the US for 30 days, as a measure to tackle the virus, Thaioil informed on Friday (March 13).
Oil supply in the global market would stay at a high level, after the US and United Arab Emirates increased their oil production in order to compete with Russia in terms of price.
Previously, these countries could not agree on reducing their production for sustaining the oil price in the global market.
International Energy Policy, meanwhile, cut its prediction for global oil demand in 2020 by around one million barrels. It would be the first time that crude oil growth has contracted in the past hundred years.
The price of benzene decreased more than Dubai crude oil, due to the market’s concerns about benzene demand in the regions where Covid-19 is spreading. However, the benzene price was supported by demand in South Africa.
The price of diesel also fell below the Dubai crude oil, after South Korea exported more diesel.
Nevertheless, the diesel price was supported by the export of diesel to Europe, as well as the maintenance of a refinery in Singapore.