Oil prices on Wednesday fell below $ 16 per barrel, reaching a minimum since 1999, due to a glut of the market and a collapse in demand amid the economic consequences of the coronavirus pandemic, Reuters reported.

The surplus of raw materials began to grow after the OPEC + group, led by Saudi Arabia and Russia, was unable to extend the agreement to reduce production in March. In April, the group agreed on a new pact, but quarantine measures to contain the pandemic led to a sharp reduction in fuel demand.

Brent crude LCOc1, which fell 24% in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down 62 cents, or 3.2%, at $18.71 by 0950 GMT.

“Be prepared for more surprises in this broken oil market,” said Rystad Energy’s head of oil markets, Bjornar Tonhaugen.

US oil inventories rose 13.2 million barrels for the week ending April 17, the American Petroleum Institute said on Tuesday. Analysts had forecast growth of 13.1 million barrels.