Brent crude tumbles to 18-year low to below $20 a barrel overnight

JOHANNESBURG – Brent crude tumbled to an 18-year low overnight yesterday before slightly recovering as the collapse in demand and Opec supply-price war created a perfect storm.

The oil price hit record lows, dipping below $20 (R353) per barrel early yesterday before claiming back some lost ground.

Traders continued to bet that the combination of widespread lockdowns across the globe and the breakdown of the Saudi Arabia-Russia stand-off would continue to weigh on prices.

The Saudi Arabia-Russia price war is showing no signs of abating.

Brent crude fell 8.94percent to $22.83 per barrel during afternoon trade before closing at $22.60 per barrel at 5pm.