Brent oil price hits $23 per barrel, lowest in 17 years

International benchmark hit lowest level since November 2002

Price of Brent crude oil hit Monday its lowest level in 17 years as coronavirus-related fears and an appreciating U.S. dollar push global oil demand lower and oversupply continues.

The international benchmark spot prices were at $23.43 per barrel at 0817 GMT — its lowest level since November 2002, according to official data. American benchmark West Texas Intermediate (WTI) was at $18.69 a barrel.

The U.S. dollar, to which the oil prices are indexed, showed strong gains early Monday against other currencies.

U.S. dollar index, which includes a basket of currencies like the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc, rose to as high as $98.87 at 0817 GMT for a 0.52% increase after ending Friday at $98.36.

Rise in the value of the greenback weakens the already low oil demand in the world that was triggered by the widespread Covid-19 and dim economic outlook.

On the supply side, OPEC and its allies failing to curb their crude oil production levels increases the glut of oil supply in the world.

Anadolu Agency

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