KUALA LUMPUR: As Covid-19 brought oil consumption to a halt, leading countries in a race to find more space to store excess oil; the fight for market share between major producers, Saudi Arabia and Russia continue unabated causing the global oil price to dip further.
On sectorial performance, the energy counters continue its volatility as 18 counters were down in early trade as benchmark Brent crude slipped to below $20 per barrel, its second time in a week.
As at 9.40 am, a total of 152,019,600 shares worth RM24.13 million were traded.
Over the past week, since the oil price crash took place, the index had declined almost 10 per cent to 655.50 points today.
Brent crude was recorded at $19.73 per barrel while WTI crude was at $11.95 per barrel.
China import of Russian oil reportedly jumped more than 31 per cent more last month while its intake of Saudi crude slid by 1.8 per cent compared to March 2019 as the battle between the world’s largest oil producers to secure more market share grew in intensity.
Meanwhile, South Korea, the country with the fourth-largest commercial storage capacity in Asia, has just run out of room to store more oil.
Analysts believe the volatility in the oil market is far from bottoming out with Brent is expected to trade at $10 per barrel.
“With the prolonged impact of Covid-19 across the globe where all types of travel have been at standstill coupled with a sharp decline in private consumption, it is difficult for the oil market to rebound in near term,” she said. – Bernama