World oil prices continue to drop this March 12.
–
This Thursday, April WTI crude oil futures fell 8.43% to $ 30.20 a barrel. Brent crude oil futures for May delivery fell 8.44% to $ 32.77.
This March 9, Brent-branded crude oil futures suffered the biggest drop since the 1991 Gulf War, registering a drop of more than 31%, to $ 31.2 per barrel. The collapse was caused by Saudi Arabia’s response to the failure of the OPEC + countries’ pact to reduce production.
–
–
–
–
Agreement failed
Last Thursday, OPEC proposed to the members of the OPEC + pact to make an additional cut in oil production of 1.5 million barrels per day in response to reducing global demand of hydrocarbons due to the coronavirus epidemic.
However, the parties were unable to reach an agreement. As a result, starting April 1, all obligations of the parties to the agreement to limit fuel production will be canceled, while one of the main oil importers, China, is still fighting the coronavirus outbreak.
In response to the failure of the covenant, Saudi Arabia made the price cut officers more drastic in at least 20 years and communicated to buyers that it will increase its crude production by up to 2 million barrels per day. Riyadh’s measure caused the dramatic fall in oil prices, which led to the collapse of financial markets worldwide.
Crash in the markets
This Thursday is also experiencing a drastic collapse in the main global markets after the WHO declared covid-19 as a pandemic and the subsequent suspension of flights from Europe to the United States. decreed by Washington in an attempt to curb the spread of the deadly coronavirus. Thus, the Sao Paulo Stock Exchange today suspended operations for the third time this week.
The main US stock indices They have also fallen sharply again this Thursday amid the intensification of the coronavirus crisis.
–
