Sadad Al-Husseini of Husseini Energy joins “Squawk on the Street” via phone to discuss the oil markets.
Oil dropped 24% to a more than 18-year low on Wednesday as the coronavirus pandemic continues to sap demand for crude, and as rising worries about a global recession lead to fears of longer-term demand destruction.
U.S. West Texas Intermediate crude fell 24.4%, or $6.58, to settle at $20.37 per barrel, its lowest level since Feb. 2002. At the low of the day, the contract hit $20.06. It was WTI’s third worst day on record.
International benchmark Brent crude shed 14.1%, or $4.07, to trade at $24.67, its lowest level since 2003.
Oil is getting hit on both the supply and demand side. A slowdown in worldwide travel and business activity is weighing on demand, just as powerhouse producers Saudi Arabia and Russia prepare to ramp up production.
“The oil market is about to flood with surplus barrels,” Bank of America said in a note to clients Wednesday.
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