US travel ban drops oil prices even further
Brent crude lost another US$2.2 and is currently at US$33.67. US crude lost US$1.87 and is currently at US$31.11. Compared to the highest figures from January, the oil prices are now down 50%.
As the coronavirus continues to spread, Saudi producers are boosting its crude production in an attempt to outbid Russian sales. Saudi Aramco has been asked to boost its daily production by one million barrel, to around 13 million barrels per day. Other countries are joining the race as well - the national company of United Arab Emirates ADNOC has announced, that it will boost its production to over 4 million barrels daily. The price war started after an OPEC meeting failed to reach a compromise for new production strategy.
The Energy Information Administration of the United States and OPEC have cut their forecasts for oil demand. The demand is still expected to drop further in this quarter.