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.