Oil prices fell for the second straight day on Thursday amid a broad decline in global markets after the United States banned travel from Europe following the World Health Organization's decision to declare the coronavirus outbreak a pandemic.

The slump in oil is being compounded by the threat of a flood of cheap supply as Saudi Arabia promised to raise output to a record high in its standoff with Russia.

Brent crude was trading down $1.65, or 4.6%, at $34.14 by around 07:18 GMT, a little above earlier lows. The contract fell nearly 4% on Wednesday. U.S. WTI crude was down $1.38, or 4.2%, at $31.60 after also dropping 4% in the previous session.

The two benchmarks are down about 50% from highs reached in January and had their biggest one-day declines on Monday since the 1991 Gulf War after Saudi Arabia launched a price war.

Source : Reuters