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Unprecedented Fall in Demand Most to Blame for Oil Slump
The respite for oil prices has proved short-lived -- instead, Brent crude has dropped below $30 per barrel again.
17 Apr 2020, 12:27 AM IST 
Pedestrians cross a road near fuel pipelines and oil storage tanks. (Photographer: Dhiraj Singh/Bloomberg)
(Bloomberg) -- 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.
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