Oil plunges 13%, continues deep slump as dismal outlooks for global demand persist - Markets Insider

REUTERS/Jim Urquhart

• Oil prices are seeing further downward momentum as gloomy demand outlooks continue amid economic pain caused by the coronavirus pandemic. 
• US West Texas Intermediate fell as much as 13% to $17.31 per barrel on Friday. Brent crude declined 0.9% to $27.58 at intraday lows before rallying.
• WTI prices moved lower Friday after China's economy suffered its first contraction in 28 years.
• Watch oil trade live on Markets Insider.

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Oil prices continue to fall, charging toward a new 18-year low as gloomy demand outlooks persist.

West Texas Intermediate crude fell as much as 13% to $17.31 per barrel on Friday. International benchmark Brent crude declined 0.9% to $27.58 at intraday lows before rallying.

WTI extended losses after China's economy suffered its first contraction in 28 years. In the first quarter of 2020, gross domestic product in China fell 6.8% as the coronavirus pandemic sent a number of economic indicators lower.

In addition, a number of dismal outlooks were released this week showing that global demand for oil is expected to slump for the rest of the year. On Thursday, OPEC said global oil demand will fall to a 30-year low as coronavirus continues to crater demand. 

Read more: 'I've gone to cash': Mark Cuban outlines his coronavirus investing strategy ahead of another 'leg down' in markets - and says now is the time to buy real estate

The International Energy Agency also released its own gloomy forecast this week. In a Wednesday report, the agency estimated that in April, global demand will fall by 29 million barrels per day. 

The outlooks and further oil price declines came after OPEC agreed on historic production cuts over the weekend. The group will begin slashing production by 9.7 million barrels per day starting May 1. 

Still, as the coronavirus pandemic continues to devastate economies around the world, it appears that those cuts won't be enough to prop up oil prices.

Oil has lost more than 70% year-to-date.

Read more: GOLDMAN SACHS: Make these 9 stock trades to capitalize on the enormous shift towards e-commerce with America on lockdown

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Oil plunges 13%, continues deep slump as dismal outlooks for global demand persist - Markets Insider
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