Oil Falls Amid Fears of Looming Global Recession Crushing Demand
- U.S. government steps up efforts to stave off economic crisis
- Saudi Arabia plans to ship more than 10 million barrels a day
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Oil deepened losses, dropping to the lowest level since 2016 as the coronavirus pandemic threatens to bring the global economy to a standstill, battering fuel demand at a time when crude supply is surging.
WTI futures fell 6% in New York on Tuesday as investors grappled with the possibility of a virus-induced global recession. The Federal Reserve announced the restart of a financial crisis-era program in an effort to stem the virus’s economic impact. U.S. stocks rebounded from the biggest rout since 1987 on the stimulus plan, but oil continued to reel from supply and demand shocks. Saudi Arabia plans to ship a record 10 million barrels a day in April.