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Post by sevenofnine on Mar 9, 2020 10:49:26 GMT -5
Is this good thing or bad thing I am not sure
Oil prices on Monday fell by over 30%, the biggest fall since the 1991 Gulf War, after Saudi Arabia slashed its export oil prices over the weekend in retaliation to Russia's refusal to agree to further production cuts.
During a meeting with the Organization of Petroleum Exporting Countries (OPEC) last week, Moscow said it would not go along with members' efforts to stabilize the market by cutting production. Moscow's move further spooked the oil markets, already reeling from a major fall in demand due to the global spread of COVID-19. Several analysts expect oil consumption to fall this year, marking only the fourth annual decline in demand in 40 years.
The OPEC+ meeting, which includes Russia, was supposed to agree to further cuts of 1.5 million barrels per day (bpd), or about 1.5% of global supply, and to extend the existing 2.1 million bpd cuts beyond March. In addition to not agreeing to further cuts to deal with the coronavirus fallout, Moscow even ruled out extending the current production cuts — which was being seen by many as a done deal — virtually putting the 3-year-old OPEC+ alliance in jeopardy
www.dw.com/en/oil-prices-collapse-with-biggest-drop-since-1991-gulf-war/a-52687503
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