March 16, 2020—Oil prices have officially fell to their lowest since 2016 amid the coronavirus pandemic, reports Markets Insider.
According to the report, Brent crude tumbled as much as 10 percent to $30.49 a barrel, while West Texas Intermediate fell as much as 8.13 percent to $29.15 per barrel.
The demand shock caused by the coronavirus (COVID-19) pandemic, coupled with the price war between OPEC and its allies, could push supply to record levels, according to IHS Markit, Bloomberg reported.
Further, The U.S. oil industry could be one of the hardest hit by the glut of supply, according to the report. Output in the US could drop by as much as 2 million to 4 million barrels per day for the next year and a half.