the oil price is in free fall on the night of Monday, when a conflict between the world’s oil giants are broken out at the same time, with the spread of coronavirusset.
A barrel nordsøolie falls more than 20 percent to 35 dollars per barrel. This is the lowest level since 2016.
There are several conditions, which is pushing the price of oil, writes Bloomberg News.
Coronavirusset has lowered the demand on fuel – among other things because there are being flown less.
at the same time, broke of the talks between Russia and the oil cartel Opec together on Friday. Opec consists of 14 countries, including Saudi Arabia, Iran and Iraq.
On the table was an agreement to cut production in order to get the price up, but that Russia would not agree to.
Thus broke a three year long romance between Russia and Opec together. It has been known as Opec+.
over the weekend Saudi-Arabia, which is among the world’s largest oil producers, has left its official oil prices down significantly.
Saudi Arabia is trying to lower the prices to get the oil refineries in Asia, Europe and the UNITED states to buy oil in Saudi Arabia at the expense of other countries.
at the same time heralded the country, that it would screw up his production. On the other hand, Russia has also announced that the country’s oil producers have the green light to pump as much oil as possible.
– the Opec+ has clearly surprised the market by entering in a price war, where they will increase their market shares, says Andy Lipow, president of consulting firm Lipow Oil, to Bloomberg News.
When the market opened in Asia on Sunday night Danish time, prices fell in the first seconds of trading more than 31 percent.
It is the largest decline in one day since the Gulf war in 1991, writes Bloomberg News. Subsequently, the falls slowed down a bit.
