Oil collapsed by 10%

US, WASHINGTON (ORDO NEWS) — Rally in the oil market was replaced by a collapse. The price of a barrel of Brent today since opening is trading about 10% below Friday’s closing levels.

Optimism regarding the resumption of the OPEC + meeting, which was to be held today, has waned. Over the weekend, she was rescheduled for Thursday. The parties need more time for discussion, in addition, Saudi Arabia and Russia are trying to attract as many countries as possible, including Mexico and Canada.

Meanwhile, Norway has already announced its readiness to cut production if other countries take such a step. By the way, Norway has not participated in such events since 2002.

The position of the Americans themselves is not entirely clear. Trump seems to have stated that he will not oblige his oil industry workers to reduce production, as this contradicts antitrust laws. At the same time, Texas, which accounts for almost 5 and a half million barrels per day, can do this at the state level, and regulatory authorities have already allowed this opportunity.

Nevertheless, Goldman Sachs notes that even a reduction of 15 million barrels may not be enough.

Meanwhile, amid the collapse in demand and prices, the largest oil companies are resorting to all possible measures to survive the crisis. In recent weeks, giants such as ExxonMobil, BP, Royal Dutch Shell, Total and Equinor have increased their debts by $ 32 billion, writes the Financial Times, while reducing costs and canceling stock repurchases.

It is worth adding that here they need to say a special thank you to the Federal Reserve System: its actions allowed to unfreeze the paralyzed debt market, and companies were finally able to attract borrowed funds.

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