There has been a massive decline in the demand for crude oil, all over the world, due to the outbreak and spread of COVID-19. The coronavirus outbreak triggered a fall in industrial production and worldwide air travel. This has lead to a substantial reduction in the import as well as the export of crude oil.
To tackle with daily losses, the oil-producing nations have decided to decrease the daily output of crude oil production. The OPEC (Oil Producing and Exporting Countries) have decided to meet in Vienna on the 5th and 6th March to decide on further production cuts.
Oil prices recorded a big leap of 1.5% worldwide with the hope that the OPEC countries will reduce their production again. Brent Crude futures increased by 78% per cent. The price went up by 1.5% and stood at $52.64 per barrel.
The futures of West Texas Intermediate or WTI saw a rise by 72%. The WTI crude oil price jumped by 1.53%. As a result, the WTI oil price per barrel on Wednesday stayed at $47.90. Both Brent and WTI crude oil had suffered a fall of 27% since they reached the peak level of 2020 in the month of January.
According to Morgan Stanley, the price forecast for WTI oil in 2020 would be around $50 per barrel. This is owing to the continuous fall in the demand for crude oil in China and other countries.