Oil falls more than $1 as coronavirus spreads

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Oil falls more than $1 as coronavirus spreads
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Oil prices fell more than $1 a barrel at the start of the trading session on Sun...

FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. Picture taken November 22, 2019. REUTERS/Angus Mordant/File Photo

Brent crude futures fell $1.84, or 6.8%, to $25.14 a barrel by 2215 GMT. West Texas Intermediate crude futures fell $1.26, or 5.6%, to $21.37 a barrel. The market has had to contend with the twin shocks of the demand destruction caused by the coronavirus pandemic and the unexpected oil price war that erupted between producers Russia and Saudi Arabia earlier this month.“We believe oil prices will continue to fall into the teens in the short term amid disaster demand destruction, building global stocks and no production limits after April 1,” said Joseph McMonigle, senior energy policy analyst at Hedgeye Potomac Research, in a note.

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