Radical measures taken around the world to protect against coronavirus have accelerated the fall in oil prices.
At 11:30 am, Moscow time, oil futures of the European Brent decreased 5.25% to a value of $ 33.91 per barrel. During yesterday’s trading session, the asset fell 3.84% and ended the day at around $ 35.79 per barrel.
At the same time futures of the American WTI lost 5.09and were trading at $ 31.3. The previous trading session was unsuccessful for the asset: the fall was 4.02%; the price at the close was $ 32.98 per barrel.
Yesterday was busy and challenging. The coronavirus epidemic received an official pandemic status; Italy imposed total quarantine, India suspended visa issuance.
The decision of the States has surprised everyone. President Trump doesn’t allow entering from Europe from March 13 to April 12.
The world is moving towards isolation; there is no point in talking about any forecasts regarding the energy market.
Demand is falling, but oil-producing countries are boosting production, which makes the prices to nosedive.
Saudi Aramco, Saudi Arabian state oil company, announced yesterday that it planned to increase its production capacity by a million barrels per day. What is more, there is the UAE state oil company, which has decided to increase production to 4 million b/d from the current 3 million b/d.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group