Analysts at financial services company Cantor Fitzgerald Europe have said global oil storage may soon fill.

Oil and gas analyst Jack Allardyce said: “With major producers pumping barrels freely and the IEA suggesting that short-term demand could fall by a fifth due to travel restrictions, global storage is likely to hit capacity over the next two-to-three months.

“This is likely to be particularly damaging for US crude, with prices in the Permian region potentially hitting single digits. While we believe that current levels are unsustainable in the medium term given achievable breakeven prices, the ongoing uncertainty around COVID-19 and apparent stalemate between Riyadh and Moscow is likely to cause continued downward pressure over the coming weeks.”

Last week, newspaper The Guardian made similar predictions, saying oil prices could fall to below $10 per barrel.