Shares in London have started the week with further losses as oil dips below the $20 a barrel level. Our Trader writer Neil Wilson says: 'European shares were weaker again as crude oil came under more pressure and virus restrictions seem set to last for a long time. Crude oil dipped below $20 and made a fresh 18-year as the complete collapse in demand due to the coronavirus combined with the OPEC-led supply/price war create the perfect storm for prices.
As I noted two weeks ago: ‘The combination of a massive supply surge from OPEC and a complete collapse in demand create conditions in the market which are the most bearish imaginable. I think we see WTI under $20 before long as the build-up in crude stocks is just going to be massive. The amount of spare supply on the market in the coming months will be scary and crude prices will fall further.’ The thing to stress is that we simply do not have any idea when demand will recover – it could take months to get back to some semblance of normality.' For Neil's full article, click here.
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