Brent crude futures hit 16-year low below $27.00/b

ICE Brent crude futures dropped Tuesday to the lowest level in over 16 years as global markets continued to respond to OPEC output concerns and the global coronavirus pandemic.

May ICE Brent crude futures slumped to $26.75/b during London afternoon trading, the front-month contract's lowest level since September 26, 2003.

As of 1335 GMT, ICE May Brent was down $1.76/b from Monday's settle at $26.97/b, while the NYMEX April light sweet crude contract was down $2.68/b to $24.66/b.

The moves came as Saudi Arabia's Ministry of Energy instructed Saudi Aramco to continue to supply 12.3 million b/d of crude to the market "during the coming months", the official SPA news agency reported.

That was an expansion on its directive earlier this month for the company to supply 12.3 million b/d of crude to the market in April, once its OPEC production quota expires -- some 25% above current levels, as the kingdom showed no signs of backing down in its price war with Russia.

Aramco can pump crude at its maximum 12 million b/d capacity for a year without any new investment, its CEO said earlier this week. The remaining 300,000 b/d will be drawn from the company's vast global storage network.