US and Russia plan talks after oil prices hit 18-year low amid Covid-19
Brent crude hit an 18-year low on Monday, prompting US and Russia to hold talks in an attempt to stabilise energy markets.
Brent crude hit an 18-year low on Monday, prompting the US and Russia to hold talks to stabilise energy markets on Tuesday.
Brent crude fell to a low of $22.58 a barrel on Monday – its lowest level since November 2002. Meanwhile, the price of US West Texas Intermediate (WTI) slid under $20 a barrel.
Brent crude is trading at $26.32 a barrel, while WTI sits at $20.39 as of 17:45 (GMT) on Tuesday.
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Demand for oil weakens due to Covid-19 pandemic
Talks between US President Donald Trump and his Russian counterpart Vladimir Putin have helped oil prices stabilise this week.
However, the commodity’s price remains weighed down by weakening global demand for oil amid travel restrictions due to the coronavirus outbreak.
Oil markets have also had to deal with Saudi Arabia and Russia engaging in an all-out price war to secure market share, with the pair failing to agree on deeper supply cuts to support prices.
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Royal Dutch Shell secures $12 billion loan facility
Royal Dutch Shell shares closed 7% higher on Tuesday after securing a $12 billion loan facility to protect dividends amid low oil prices and the ‘significant uncertainty’ of the coronavirus outbreak.
‘As a result of COVID-19, we have seen and expect significant uncertainty with macro-economic conditions with regards to prices and demand for oil, gas and related products,’ Shell told investors on Tuesday.
‘Furthermore, recent global developments and uncertainty in oil supply have caused further volatility in commodity markets.’
Shell closed at £14.19 a share on Tuesday.
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