April 28, 2020 | Investopaper
Oil prices continue to drop on Tuesday as the fall in demand may overwhelm the storage capacity around the world. Oil plunged by more than 12 percent on Tuesday morning trading. This is after the 25 percent decline on Monday.
West Texas Intermediate (WTI) fell to $11.15 per barrel while Brent Crude slipped to $19.21 per barrel. On Monday, WTI has declined by almost 25 percent.
As the demand for oil has been reduced by almost one-third due to the global coronavirus pandemic, the prices of oil have plunged to record low. With the fall in demand, OPEC and its allies agreed on a production cut with 9.7 million barrels production per day, earlier in the month of April.