Oil prices dropped as much as 9.13% on Thursday, March 12, as oversupply continued to pressure the price. The U.S. WTI crude already plunged more than 25% this week, putting it on track for the worst week since December 2008, and its historically third largest weekly decline.
On Thursday session, Brent plunged as much as $3.27 or 9.13% to $32.52/bbl, while WTI dropped as much as $2.96 or 8.97% to $30.02/bbl.
The outbreak of coronavirus had caused global demand in crude oil to plummet from the already-low price. Countries are starting to ban travel such as Italy and the US, while the largest oil consumer, China, temporarily closed factories to contain the virus from spreading.
Not long after fears of virus spreading, Russia showed its intention to leave OPEC+ and continue pumping as much oil as it wants and Saudi Arabia, the biggest producer in OPEC intended to do the same.
Thus, oil prices are now on the pace of the worst week since December 2008, and its historically third largest weekly decline.
Not that Saudi and Russia will seek resolution together, international media reported that Saudi Arabia will not take part in a conference call of the OPEC+ technical committee which was originally scheduled for March 18.
Russia also stated that the Kremlin does not plan to make contact with Riyadh and OPEC on oil issues, though it can be arranged quickly if necessary.