World oil prices jump after collapse

US, WASHINGTON (ORDO NEWS) — World oil prices rise after yesterday’s collapse, according to trading data.

Thus, the brands Brent and WTI rose in price by 16 and 30 percent, respectively. The cost of the first rose to almost $ 29, the second – up to $ 26 per barrel.

On the eve of world oil prices updated the lows of 2002-2003, which caused the weakening of the ruble.

Quotes collapse

Demand for oil in the world fell at the beginning of the year due to the coronavirus pandemic, which led to a sharp drop in prices. And in March, due to the disruption of the OPEC + deal, the oil market collapsed.

The agreement of OPEC and non-member countries to reduce fuel production has been in force since the beginning of 2017. It was repeatedly extended, and the conditions changed.

So, until the end of 2019, the agreement provided for a reduction in production by 1.2 million barrels per day from the level of October 2018, and in the first quarter of 2020 – by 1.7 million barrels.

At the same time, Saudi Arabia insisted on a further reduction in production, and Russia proposed to maintain the existing conditions. As a result, the parties failed to agree, and from April 1, the parties to the transaction will no longer have any obligations.

After that, Saudi Arabia announced its intention to increase production, lower prices and offer large volumes of discounts to European customers. This collapsed oil quotes in world markets. Since the beginning of the year, prices have more than doubled down.

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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.

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