March 16, oil prices returned to decline after rising on Friday. The price of Brent crude oil during trading on the ICE exchange fell below $ 31 per barrel for the first time since February 2016.
During the bidding, the cost of a barrel fell to $ 30.88 per barrel. At the time of writing the news, the price of the May futures for Brent crude oil fell by 9.1% compared with the close of trading on Friday, to $ 31.02 per barrel.
The cost of WTI crude oil decreased by 5.9% to $ 30.33 per barrel.
On Friday, oil prices rose. One of the reasons is the statement by US President Donald Trump, who announced the purchase of “a significant amount of oil” for the state reserve. Brent oil prices reached $ 35 per barrel.
Today’s fall is taking place against the backdrop of the announcement by the US Federal Reserve to reduce the federal financing rate by 1 percentage point from 1−1.25% to 0−0.25%. This is the second Fed rate cut in the past month. Investors remain concerned that the measures taken will not help prevent a recession.
On Monday, stock markets around the world are falling. Stock indices in Hong Kong, Shanghai, South Korea and Japan closed with a decrease of 2.5% -4%. The composite index of the largest enterprises in the European region Stoxx Europe 600 is reduced by 7.8%.
Recall that last week the American S&P 500 dropped by 13% in five days, the Dow Jones – by 14.3%, the British FTSE 100 – by 17%, the German DAX – by 19.2%. On Thursday, March 12, for the first time in 11 years, both major US indices officially appeared on the “bear territory” – the fall of both compared to recent highs reached 20%. Oil prices collapsed during the week by 27%, to $ 33−34 per barrel amid OPEC’s deal breakdown with Russia and the outbreak of a price war.