For more than two weeks, America has witnessed a noticeable drop in the price of a barrel of American oil in all countries of the world, as its price has reached less than 43 dollars, but it was surprising and unexpected that the price of a barrel of US oil from Brent crude increased.
The price of oil today
The price of a barrel of US oil from Brent crude has escalated today, reaching 26.67 US dollars, which is equivalent to 100.28 Saudi riyals. As for the previous price, it was approximately 26.48 US dollars, or 99.56 Saudi riyals, which means that the price of a barrel of US oil from Brent crude It increased by 5%.
America recently witnessed a drop in the prices of a barrel of US oil very significantly, especially after the loss of a barrel of oil 98%, and this is the lowest price reached by the price of a barrel of oil throughout history, and that rapid decline occurred during trading on Monday, the twentieth of April of the year 2020.
One of the most important reasons leading to a decline in the price of oil globally was the war between Russia and the Kingdom of Saudi Arabia, and the emerging Corona virus crisis affected most of the world economically. To overcome this financial crisis caused by all of this, OPEC decided that it would reduce oil production to 9.7 million barrels per day. In May and June, this will be the largest reduction in oil production since 2008.
The lowest price for oil historically
The American newspaper CNN also confirmed that the price of a barrel of US oil has reached $ 0, which is the least that the price of US crude oil can reach since the start of trading on the New York Stock Exchange in 1983.
Reasons for the decline in oil prices globally
The countries of the world witnessed recently the emergence of the new Corona virus, which is a rapid spread epidemic and that it is not an easy matter to underestimate, but that countries have taken all health and preventive measures to confront and combat this disease, and try to pass this stage and overcome crises and the economic stagnation that resulted from this epidemic. Worldwide, which led to the collapse and fall of world oil prices.
Also, one of the reasons for the low oil prices is the presence of a large surplus of oil in the markets, and American companies are saving huge reserves of oil, which prompted many to exploit and sell this surplus due to the increase in its storage prices, which led to the recent collapse of oil and global oil prices.
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