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While the death toll from the Covid pandemic exceeded the 1930s, and governments around the world imposed travel restrictions and isolation measures to limit the epidemic, oil prices on Monday witnessed a major collapse, reaching their lowest levels in 17 years.
After the financial markets deteriorated and aggravated Corona Virus Crisis Coved -19 Over the weekend, oil prices collapsed on Monday in Asian markets.
The price of WTI in the United States lost 5.3% to $ 20 a barrel, while the North Sea Brent barrel fell 6.5% to $ 23 for the first time since 2003.
It is noteworthy that the oil markets began to collapse weeks ago, with the world’s governments imposed travel restrictions and isolation measures to contain the virus.
The collapse comes as the death toll from the Covid pandemic exceeds 30,000, most of them in Italy and Spain, with a significant increase in the number of infections in the United States.
The number of injuries in the United States is about 140,000, with more than 2,400 deaths.
The surge in casualties has prompted U.S. President Donald Trump to be less optimistic about a return to economic activity in the United States, although he was stressing that this was possible by mid-April.
Trump’s epidemic counselor, Doctor Anthony Fuchi, expected a frightening scenario about the development of the crisis, while he estimated that the virus could lead to the death of “one hundred thousand to two hundred thousand people” in the country.
Major oil producers such as Saudi Arabia and Russia are also fighting a price war that has led to a rise in reserves and consequently a drop in prices. Last week, stock markets rebounded and oil prices rose as governments around the world announced massive recovery measures supporting the global economy.
However, expert at Axi Core Financial Services, Stephen Ennis, considered that oil prices are threatened with further decline with full storage capacity and the delay of the countries concerned in finding solutions. “The longer its response is delayed, the greater the risk of a new drop in prices.”
France 24 / AFP