Oil crashes to 18-year low as demand suffers unprecedented drop
The great oil crash of 2020 ain't over yet.
US crude plunged nearly 7% and finished at an 18-year low of $20.09 a barrel Monday as the coronavirus pandemic continues to deal a devastating blow to energy demand.
At session lows, oil touched $19.27 a barrel -- the weakest intraday price since February 2002.
Brent crude, the world's benchmark, tumbled as much as 13% and fell to as low as $21.65 a barrel, its lowest point in 18 years. Brent settled at $22.76 a barrel, the lowest close since November 2002.
Global oil consumption will likely crater by 12 million barrels per day this quarter, or 12%, the steepest decline ever recorded, according to Bank of America.
"It is very ugly and there is no way to sugarcoat it," Bank of America commodity analysts wrote in a Monday note to clients.
At the same time, Saudi Arabia and Russia are flooding the world with excess oil -- at exactly the time when the opposite approach is required. That price war is exacerbating the pain in the oil market.
Those two factors have driven US oil prices down by a stunning 68% since the recent peak of $63.27 a barrel in early January.