Oil prices fell sharply on Wednesday as worries over weaker demand coupled with price-war fears gripped market participants.
The West Texas Intermediate for April delivery decreased 6.58 U.S. dollars, or 24.4 percent, to settle at 20.37 dollars a barrel on the New York Mercantile Exchange, marking its lowest level since Feb. 20, 2002, according to Dow Jones Market Data.
Brent crude for May delivery was down 3.85 dollars, or 13.4 percent, to close at 24.88 dollars a barrel on the London ICE Futures Exchange, with prices ending at their lowest since May, 2003.
Traders grew concerned over further downside risks to oil demand amid the coronavirus fallout, while there is still sign of a price war on the oil market, experts noted.
Earlier this month, failure to strike a deal on oil production cuts between the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, had sparked fears of a possible price war.
Saudi Arabia, a key OPEC member, and Russia already announced a significant increase in oil production.
