Unprecedented Fall in Demand Most to Blame for Oil Slump

The respite for oil prices, which climbed from their multi-year lows after an agreement on output cuts by the world’s major producers, has proved short-lived -- instead, Brent crude has dropped below $30 per barrel again. An unprecedented fall in demand is to blame for most of the decline, according to Bloomberg Economics. Oil prices have fallen by $36 per barrel so far this year: BE estimates that $22 of this drop is due to weak demand resulting from the coronavirus pandemic bringing the global economy to a virtual standstill -- the remaining $14 reflects oversupply.