U.S. Oil Plunges to $25 a Barrel

Both Brent and West Texas Intermediate crude futures settled below $25 on Wednesday, marking a new milestone in a selloff that has taken even the most bearish analysts by surprise. Brent crude futures, the international benchmark, fell 13% to $24.88, their lowest closing level since May 2003. WTI plunged 15% to $22.03, its lowest level since 2002. In the past month, both benchmarks have been cut in half. Analysts have been warning that the oil price drop brought on by simultaneous supply and demand shocks will cut deep and last a long time. Saudi Arabia, Russia, and other nations are ramping up production just as the coronavirus causes economies around the world to grind to a halt. As recently as last month, demand was expected to grow by at least 1 million barrels in 2020. Now, Goldman Sachs expects it to fall by 1.1 million barrels for the year, the largest drop in history, according to analyst Damien Courvalin. Demand could fall by 8 million barrels in the second quarter, Courvalin estimates. The U.S. and other countries are buying crude to place into storage, but those actions are unlikely to stop the declines in price...MORE