US, WASHINGTON (ORDO NEWS) — The next step of Saudi Arabia in the price war with Russia made oil quotes survive a new round of free fall. The price of May Brent oil futures on the London ICE Futures exchange fell by 14.7% to $ 24.52 per barrel, the lowest since 2003.
Now, according to MarketWatch, there has been a slight correction – futures cost $ 25.94 (a decrease of about 9.7%).
On Wednesday, the Saudi Ministry of Energy ordered the Saudi Aramco state-owned company to keep oil supplies at 12.3 million barrels per day, which should be achieved in April after the collapse of the OPEC + deal for several months.
At the same time, Riyadh not only “opened the tap”, having sharply increased supply in the market suffering from low demand due to coronavirus, but also offered significant discounts on the price of its oil for buyers from Europe, Asia and the US.
At the moment, the fall in prices relative to the level at which they were before the collapse of the OPEC + transaction is about 45%.
“What we are seeing is essentially the equivalent of an atomic explosion for the oil markets,” Rystad Energy analyst Louise Discon quoted Bloomberg as saying. She expects prices to continue to fall until a point of balance with cost is reached and production begins to decline.
The price of WTI oil on the New York Mercantile Exchange (NYMEX) on Wednesday fell by a quarter (25.6%), to $ 20.05 per barrel – the lowest since 2002. As part of the correction, the price rose slightly – to the level of $ 21.74.
Meanwhile, copper prices have experienced a maximum drop since 2008 on fears of a recession and declining demand. Copper prices fell 7.8% to $ 4,745 per ton, dropping below $ 5,000 for the first time in three years.
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