Brent crude on Wednesday dropped to $28.40, the lowest since early 2016. The price was down by eight per cent or O.3 per cent from 28.81 hours ago, as coronavirus epidemic hits the world.
United States (US) crude was also down two cents at $26.93 a barrel, after falling to as low as $26.20, also the lowest in four years. West Texas Intermediate fell six per cent on Tuesday.
A fall in US inventories of crude, gasoline and distillates, as reported by an industry group, provided some support to prices, but the demand outlook remains grim amid a price war among major producers.