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Oil tumbles to 18-year low as coronavirus dings China GDP
Trump: Oil production to be cut significantly
President Trump says OPEC has agreed to cut oil production by approximately 20 million barrels
U.S. oil prices plunged Friday after China reported its gross domestic product shrank for the first time since recordkeeping began in 1992 as the economy was shut down to slow the spread of COVID-19.
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West Texas Intermediate crude oil for May delivery tumbled by as much as 9.26 percent to $18.03 a barrel, its lowest since October 2001, before trimming its losses. The contract, which expires on Wednesday, was trading at $18.59.
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“Lingering weakness in domestic demand alongside an extended period of global weakness will probably prevent GDP from returning to its pre-virus path until at least the middle of next year even amidst the ramp-up in policy stimulus,” wrote Julian Evans-Pritchard, a Singapore-based senior China economist at the research firm Capital Economics.