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Oil Drops Fifth Straight Week on Heightened Supply-Demand Shock

  • U.S. crude oil futures are down 65% so far this quarter
  • Trafigura sees 1 billion barrels in storage in coming months
Pipeline pipe
Photographer: Daniel Acker/Bloomberg
Updated on

Oil declined for a fifth straight week amid a one-two punch from collapsing demand due to the coronavirus crisis and ballooning supply from producers vying for market share.

Futures in New York slumped 4.8% on Friday and are poised for the biggest quarterly drop on record as weak demand and an onslaught of supply roil markets. Refineries across the globe are curbing consumption as fuel use declines with people staying home. Meanwhile, major trader Trafigura Group expects as much as 1 billion barrels to be sent into storage tanks.