Breaking: WTI collapses below $13, nearly 30% down, lowest since 1999

Oil prices have to extend their relentless tumble, with WTI dropping below $13 per barrel. The lockdowns imposed to curb the spread of coronavirus have crushed demand for the black gold.

The OPEC+ agreement between Saudi Arabia, Russia, and others, has only temporarily halted the sell-off. However, implementation of the accord begins only in May, and storage is filling up. Moreover, the cut of around 10 million barrels per day seems insufficient amid a fall of double or triple in demand.

Last week, both major petrol producers held a call and stated that the impact of the accord is yet to be seen in markets. WTI traded above $20 back then. Further cuts in output may be needed to hold prices down.

Here is a monthly chart showing price movements in the past 22 years. WTI Crude flirted with $10 back in 1999. 

See Crude oil down over 18%, can it drop to $10?