WTI crude oil futures fell to the lowest levels in over 20 years as the ongoing coronavirus pandemic continues to weigh heavily on global demand even as traders worry about US filling up its oil storage facilities soon. At the time of writing, WTI crude oil is trading at around $15.54 per barrel.

Both the OPEC as well as the IEA have recently lowered their global oil demand forecasts recently, highlighting the drop in oil consumption expected in the coming months in the wake of the continued shutdowns and travel restrictions being imposed by governments around the world. Meanwhile, concerns are rising in oil markets that oil storage facilities in the US are nearly full as a result of the decline in demand, as oil producers are unable to scale back supply at a corresponding pace.

Global oil demand is likely to fall by as much as 30% in the wake of the coronavirus pandemic, while production cuts by OPEC and other leading oil producers could begin by May. However, the estimated reduction in supply by around 20 million bpd may not offset the weakness in demand, exerting downward pressure on crude oil prices lately.

While the OPEC+ countries agreed recently to curb oil supply, other leading producers like the US and Canada cannot turn off their production facilities as suddenly, which could result in a possible oversupply in oil markets in the near future.