SYDNEY - Crude dropped to its lowest in 17 years on Monday as coronavirus lockdowns cascaded through the world's largest economies, leaving the market overwhelmed by cratering demand and an unmanageable surplus.
Brent crude for May lost as much as US$1.90 to US$23.03 a barrel on the ICE Futures Europe exchange before trading at US$23.54 at 9:54am Sydney time. West Texas Intermediate fell as much US$1.59 to US$19.92 a barrel on the New York Mercantile Exchange before trading at US$20.29. "Demand concerns are critical but well known, what really took the market down were the signals we got from Saudi Arabia and Russia that they intend to continue their current path," said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia."Market hopes of a deal have come undone."