Oil price continues tumbling, drags FTSE-100 down too
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The oil price continues tumbling in the world markets amid the slump in demand due to the coronavirus pandemic which is playing havoc with the global economy.
On Monday morning, Brent crude fell to $23.03 a barrel at one point, its lowest level since November 2002, while the price of US West Texas Intermediate (WTI) fell below $20 a barrel, close to an 18-year low.
Oil prices have fallen by more than half during the past month despite the fact that the companies cut back or close production, meaning that the reduction is production isn’t enough amid a shrinking demand.
Meanwhile, the price war between Saudi Arabia and Russia is also major factor, which began when Saudi Arabia failed to convince Russia to back production cuts that had been agreed with the other members of the OPEC oil producers' group.
On the other hand, the London Stock Exchange also experienced more losses on Monday morning amid the worsening coronavirus situation and a tumbling the oil prices.
The FTSE-100 Index fell 1.6 percent shortly after the open to 5,420 points. It had fallen 5.3 percent on Friday after rallying strongly over the previous three days.