Oil Reaches Lowest Price Since 2003

The price of oil is at the lowest point it has been since 2003 according to new reports.

According to The Hill:

U.S. oil prices reached their lowest point since 2003 on Wednesday as the coronavirus has reduced demand in countries around the world.

The prices fell for a third session, with U.S. crude Clc1 reaching $25.06 per barrel, the lowest prices since late April 2003. As of 11:35 Greenwich Mountain time, U.S. crude Clc1 hit  $1.51 cents or 5.6 percent at $25.44 per barrel, Reuters reported.

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The last time the prices were that low, the U.S. had recently invaded Iraq, and China was rising in the global economy, sparking an increase in global oil consumption to record levels, Reuters noted.

Meanwhile, Brent crude LCOc1 traded down 95 cents at $27.78 a barrel after reaching $27.56, the lowest point since early 2016.

Global demand is going down due to the coronavirus response and this could further drive down prices to levels not seen since 2002.

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