#CrudeOil fell more than 9% today, to close near $20.65 per barrel, as energy investors and traders noticed that even a record production cut by OPEC+ was not enough to restore market balance as crude consumption took a sharply hit from stay-at-home restrictions and closures tied to the coronavirus pandemic.
Major oil-producing countries (Russia, Saudi Arabia, USA, etc) have agreed to cut 9.7 million barrels a day, which is 4 times more than the previous record set in 2008, in response to a nearly 30% drop in global fuel demand.
WTI Crude Oil futures fell below $20 briefly, to take out a large number of stop losses, and bounced back sharply to $20.75l while Brent crude oil fell below $30 per barrel during afternoon trading.
Just imagine, Brent Crude Oil is 50% more expensive than WTI Crude Oil — such a major gap is unimaginable, and its creating acute pressure on US shale oil producers.
Our WTI Crude Price Outlook is a recovery back to $25 by end of April 2020.