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The oil market plunged into an unprecedented crisis

2020-04-01T19:12:26.766Z


Moscow, Riyadh and Washington are discussing how to end the price war. The unprecedented drop in demand for Covid-19 complicates their task.


The Covid-19 has indeed contaminated the world oil market. Black gold, whose prices have been historically volatile, has certainly experienced severe shocks and counter-shocks, but this one is second to none. Since the beginning of the year, the price of a barrel of brent, which started at $ 65, has lost two thirds of its value. It remained under 25 dollars Wednesday after spending the day before under 23 dollars, the lowest in eighteen years. This collapse is the result of a surprise price war launched in early March by Russia and Saudi Arabia, coupled with an unprecedented contraction in global demand for crude.

Read also: Oil: American companies in panic

From mid-January, the barrel slide started. It was then mainly the paralysis of China, which absorbs 13% of the demand for oil, which weighed on prices. On March 6, meeting between OPEC in Vienna, cartel led by Saudi Arabia, and eleven countries including Russia, associated in OPEC +. Objective: reduce production, together, to support prices.

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Source: lefigaro

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