Oil price drops 30 percent - News-Credit-Mortgage-Coin

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Monday, March 9, 2020

Oil price drops 30 percent


Crude oil has become cheaper by almost a third. The background is a "price war" among the oil-producing countries. So far, OPEC and Russia have not been able to agree on a common conveyor brake.




Under the pressure of the coronavirus epidemic, oil has become cheaper since the beginning of the year. This is particularly difficult for the member states of the Organization of Petroleum Exporting Countries (OPEC). The cartel's attempts to limit production and thereby stabilize the price have so far failed: Russia, which is only part of the expanded "OPEC +", wants to continue producing oil undiminished. Analysts are already talking about a "price war" between Russia and Saudi Arabia.

According to an insider, Saudi Arabia now wants to increase its oil production. The world's largest oil exporter plans to increase output to well over ten million barrels a day in April, reports the Reuters news agency. In addition, Saudi Arabian state-owned oil company Saudi Aramco had announced that it would lower the official sales price (OSP) for all types of oil and all customers. For example, deliveries to Northwest Europe are said to be cheaper by eight dollars per barrel.

US light oil cheaper too

Shortly after the start of trading on Sunday evening, Brent crude oil from the North Sea cost $ 33.59 per barrel (159 liters each). That is 25.8 percent less than on Friday evening. US light oil fell 23 percent to 32.06 cents per barrel. At times, the Brent price had dropped to $ 31.02 and US light oil to $ 30.

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