Today's decline in oil was attached with the demand concerns building up as well as Iraq's predictions that they could face difficulty in meeting the commitment for the oil output cuts agreed with OPEC, after gains from the previous session.
"As optimism fades around global growth prospects, oil is giving up (last week's) gains, aided by a strengthening U.S. dollar," said Michael McCarthy, chief market strategist at CMC Markets.
U.S. West Texas Intermediate (WTI) crude (CLc1) futures fell as low as $18.10 a barrel earlier in the session and were down $1.40, or 7.08%, at $18.38.
Hopes that the 10-million-barrel cuts in daily production that will be effective starting from Friday agreed by OPEC, could help boost the oil prices. However, a threat made by the U.S. President Donald Trump late last week on allegations which China refuted, that the CODVID-19 is originated in one of the labs in Wuhan and that the U.S is to consider raising tariffs on China to retaliate for the spread of the coronavirus raised more concerns that trade tensions "War of Words" could put a pause on the economic recovery, putting a lid on oil price gains.
Crude stockpiles that rose by almost 9 million barrels last week, announced by the EIA. This week's expectations from analysts show an increase of 10.6 million barrels, same as last week's predictions.