Oil price drops rapidly

Oil price drops rapidly

World oil prices are plummeting amid the ongoing epidemic of coronavirus, as well as the collapse of the OPEC + agreement. This is evidenced by trading data on international exchanges today, March 9th.

So, during trading on the ICE exchange in London, the price of a futures contract for North Sea Brent crude oil for May 2020 fell to $ 31.74 per barrel.

At the auction in New York, April futures futures for the Texas WTI brand fell in price to $ 27.72 per barrel.

Earlier, on March 7, in Vienna, the next round of negotiations between the parties to the OPEC + transaction took place. oil-producing countries discussed whether it would be worthwhile to further reduce the level of oil production amid the spread of coronavirus in the world.

The countries of the OPEC cartel proposed to reduce production by a total of 1.5 million barrels per day. At the same time, 1 million barrels would fall on OPEC countries, and 0.5 million barrels on non-OPEC countries.

But Russia and Kazakhstan opposed this proposal. The OPEC + deal, which has been in effect since the beginning of 2017, has actually collapsed. Oil-producing countries can now produce any possible amount of oil.

The result is logical – on March 7, oil went down. Today, after the weekend, the fall in black gold prices has taken a landslide.

At the same time, economists do not exclude that oil may reach up to $ 20 per barrel.

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