Brent tumbles 9% to 18-year nadir

Brent prices maintained their losses in American trade with a massive 9% drop, hitting 18-year lows as global demand is expected to plummet amid the Covid 19 pandemic, while Saudi Arabia said no talks are taking place with Russia to restore balance to the market. 

Brent is down 9.6% to $22.61 a barrel, the lowest since March 2002, away from the opening of $23.86 a barrel. 

Brent was down 7% on Friday, the third loss in a row on fears of a renewed Russia-Saudi Arabia price war. 

Brent marked the fifth weekly loss in a row on expectations of a historic surplus in the market, while global demand is estimated to fall by 20 million bpd. 

The International Energy Agency expected demand to fall by 20% amid lockdown measures for 3 billion people around the globe. 

Covid 19 so far infected 715 thousand people and killed 34 thousand, paralyzing air travel and putting 3 billion people in home isolation.

A Russian official told Reuters that a large number of oil producers could cooperate with OPEC and Russia to support prices. 

Many major producers including Russia and Saudi Arabia intend a big increase in output in April after the OPEC plus deal collapsed amid Russia-Saudi Arabia disagreements.