Oil prices remain low with virus-related low demand

By Ovunc Kutlu

ANKARA (AA) - Crude oil prices remained low on Wednesday despite Saudi Arabia's plan to make deeper cuts against low global oil demand caused by the novel coronavirus (COVID-19).

International benchmark Brent crude was trading at $29.59 per barrel at 0639 GMT for a 1.3% decline after closing Tuesday at $29.98 a barrel.

American benchmark West Texas Intermediate (WTI) was at $25.69 a barrel at the same time for a 0.35% loss after ending the previous day at $25.78 per barrel.

Saudi Arabia, the world's largest crude exporter, announced Tuesday that it will cut its oil production by an additional 1 million barrels per day (bpd) to 7.5 million bpd starting in June, from the 8.5 million bpd previously agreed as part of the OPEC+ deal in April.

Under the deal, a total of 23 oil-producing nations have begun lowering their collective output by 9.7 million bpd from May 1 to June 30.

However, crude prices continue to remain low, as air and land transportation around the world have come almost to a complete halt while global oil demand remains weak.

Global oil consumption is expected to increase, and to raise crude prices higher, once countries in Asia, Europe and North America soften quarantine measures against COVID-19 over the following months.