Volatility in oil market continues as price plunges

Despite the deal by the Organization of Petroleum Exporting Countries, its allies (OPEC) and other top oil producers, in addition to the intervention of US President, Donald Trump, the volatility of the oil market still continues unabated.

The Brent crude crashed by more than 5% as it sold for about $28. The US West Texas Intermediate (WTI) crude slumped by 0.55% as it sold for $20 per barrel. Also the Bonny light crude had an over 7% drop to sell at $24.46 per barrel.

The International Energy Agency (IEA) on Wednesday, predicted a 29 million barrel per day oil demand slump for April. The slump is to a level that has not been witnessed for over two and a half decades and further said that no output cut will fully make up for the decline in prices in the oil market.

Some analysts have predicted more pressure with adverse effects on the oil market as long as the demand does not improve. However, with the global lockdown and restrictions at the moment, this seems like a tall order.