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Oil further declines to levels last seen in 2008.

Oil is headed for its largest weekly collapse since 2008 as a bitter price war erupted between Saudi Arabia and Russia, and coronavirus contagion cratered demand.

Oil Futures in New York are down 18% this week. The crude surplus may reach a record high by April as the two former OPEC+ allies race to increase production, according to Goldman Sachs Group Inc. The market’s structure has already returned to a super-contango, indicating a big oversupply.

Crude recovered some of this week’s losses on Friday, with equities paring Thursday’s slump. Still, signs of fear abounded, with oil more volatile than during the financial crisis.

The slump in oil may make recovery of global markets even harder as the Corona-Virus pandemic continues to hit markets globally. As at yesterday, markets had faced an 11 Trillion dollar loss in value and with every reported case of the virus, value keeps deteriorating.