US, WASHINGTON (ORDO NEWS) — The price of Russian Urals oil delivered to Northwest Europe fell to $ 18.64 per barrel, Argus Media, a price agency, said.
“The cost of Urals is steadily decreasing amid Saudi Aramco ’s decision to sharply reduce contract prices for April parties,” writes Argus.
It is noted that this is the minimum price level since the beginning of 2002. According to the agency, their fall was affected by reports of an increase in oil shipments from the Baltic ports in early April by 25 percent compared to the same period of the current month.
On the eve of world oil prices fell to a minimum in 17-18 years. For example, the cost of May futures for the North Sea Brent brand oil mix fell by more than 13 percent – to $ 24.88 per barrel.
In turn, the WTI brand fell in price by almost 23 percent – below 21 dollars per barrel.
Due to the coronavirus pandemic, oil demand fell at the beginning of the year, leading to a sharp drop in prices. In March, due to the failure of the OPEC + deal, the oil market collapsed.
The countries included in the agreement could not agree on changing the parameters of the agreement on the reduction of oil production or its extension. Russia did not agree to the cartel’s proposal to further reduce production and proposed to maintain the existing conditions. Saudi Arabia , in turn, insisted on an additional reduction in oil production.
As a result, from April 1, the countries – members of the OPEC + transaction are withdrawn previously concluded obligations.
At the same time, Riyadh subsequently, on the contrary, announced an increase in production and lower prices for black gold, which collapsed quotes. Since the beginning of the year, prices have more than doubled down.
According to media reports, after the transaction expired, some OPEC + countries launched a “price war” in the oil market.
In particular, Reuters, citing sources, said that Saudi Arabia has stepped up efforts to oust Russian Urals oil from its main markets, offering instead its own at a lower price. In particular, according to the agency, such negotiations were conducted with the French Total.
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