The fall of Brent crude prices was the strongest since 1991

Falling futures for oil of mark Brent is second only to the fall of 1991, when there was a war in the Persian Gulf, reports Bloomberg.

The price of Brent crude oil at the beginning of the trading session the 1st working day after the destruction of the Treaty of OPEC fell by thirty per cent, To 31, $ 43 per barrel. Prior to that, Brent had dropped To 31, 5 dollars during subsidence in January 2016.

in 1990, after Iraq's invasion of Kuwait International prices of petroleum products increased from fifteen dollars a barrel To 41, fifteen dollars. However, the completion of the operation " desert Storm ", which was conducted by the US and its allies, by February 1991, the Price of fuel very quickly dropped To 17-18 dollars per barrel.

The current reduction in oil prices was provoked by the failure of the negotiations of the countries-participants of the agreement of OPEC , which on the background beating on the demand of the epidemic, coronaviruses were not able to determine satisfactory to all parties fresh characteristics of the contract or extend the current agreements. So, Russia advocated the preservation of existing conditions, and Saudi Arabia has offered to further reduce the oil production. In the end, from 1 April, all obligations of the parties to the Treaty to limit the production of the fuel are canceled.

according to the Agency Bloomberg, Saudi Arabia plans to increase oil production in April To 10 million barrels per day in response to lack of consensus. However, as has declared to Agency sources, Riyadh allows for the increase of oil production up To 12 million barrels per day. In comparison with March figures - 9, 7 million a day.

analysis of Goldman Sachs, amid the panic in the oil market the Price of fuel now could fall to $ 20 per barrel.



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sections: Politics