Oil prices collapse on demand slump, Brent at lowest since 1999

Oil prices collapsed on its second day, with Brent dropping to a record low since 1999 as the market suffered from oversupply and persisting weaker demand.

Brent crude plunged 14%, or $2.70, at $16.63 per barrel, while West Texas Intermediate lost 6%, or 68 cents, at $10.89 per barrel.

The U.S. June contract fell for the first time as the two riskiest days in the history of the oil industry overwhelmed the market.

Oil prices have dropped 80% this year and global demand 30%. 

The U.S. Senate approved the $500 billion additional support for the economy and is set to be passed at the House of Representatives within the week.

However, global concerns focused on the possibility that despite the stimulus programs and fluidity injected into the economy, a longer slump in demand would mean more companies to perish before the crisis is over.

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