The prices of crude oil continue to decline for the third consecutive day this week, with US Oil set to post the largest weekly loss seen since 2008, over rising tensions about the coronavirus pandemic and its impact on the global economy and oil demand. At the time of writing, WTI crude oil is trading at around $31.17 per barrel.

Analysts anticipate further slide in crude oil prices, down to as low as the $20-range over the worsening sentiment in global markets as the number of cases and the death toll from the virus continue to rise across the world. So far, WTI crude oil is set for a 25% decline this week, the worst decline since the week of December 19, 2008 due to the financial crisis.

Crude oil prices have been trading bearish in recent weeks over concerns that the spread of the coronavirus can create a significant reduction in demand for oil, and travel restrictions have aided these concerns lately. However, the crash into the $30-range came earlier this week when Saudi Arabia announced that it was going to ramp up crude production and cut official selling prices starting April.

The price war set off between Saudi Arabia and Russia after the latter’s refusal to agree to deeper supply cuts is set to drive a supply glut in markets, and the timing could not be worse. All around the world, the demand for oil is weakening as a result of the outbreak, which the WHO declared as a global pandemic a couple of days ago, further heightening the risk-off sentiment in markets and sending crude oil prices lower.