Brent crude prices hit $23.03 a barrel on Monday, March 30 morning during Asia hours - the lowest level since November 15, 2002.
West Texas Intermediate fell as much $1.59 to $19.92 a barrel on the New York Mercantile Exchange before trading at $20.29.
Due to coronavirus-related weak oil demand and the Saudi-Russian price war for a larger share in the global oil market, price of the worldwide benchmark Brent crude declined below $25 per barrel on March 18.
The oil markets have been slammed by demand destruction caused by the coronavirus pandemic and the Saudi Arabia-Russia price war that is flooding markets with extra supply.
Saudi Arabia and Russian Federation have promised to flood the market with oil in April after talks collapsed earlier this month between the Saudi-led Organization of the Petroleum Exporting Countries and its allies led by Russian Federation - a grouping known as OPEC+.
The United States of America had last week pleaded with Saudi authorities that "as a leader of the G-20 and an important energy leader, Saudi Arabia has a real opportunity to rise to the occasion and reassure global energy and financial markets when the world faces serious economic uncertainty".
"The price is so low now they're fighting like insane over, over distribution and over how many barrels to let go", he added.
The dip in oil prices came after Trump on Sunday backed off his stated goal of getting the USA economy back up and running by Easter, and instead extended social distancing guidelines until the end of April. "And they both went insane, they both went insane". "If oil prices go lower to such levels, then we should expect to see shutdown of production facilities", he explained.
USA crude-oil futures dropped to their lowest level in over 18 years, weighing on the shares of oil-and-gas producers and pushing European and Asian stocks lower.
Also, with demand being crunched, refiners are already cutting back on crude purchases, no matter how cheap oil is. Goldman Sachs Group Inc. estimates consumption will drop by 26 million barrels a day this week, while distress signals are spreading with some Indian refiners declaring force majeure on imports.
"In the near term, oil prices may need to trade lower into the cash cost curve to trigger production shut-ins to start to prevent tank tops to be reached".