International oil price falls to a low point

[ Time:2020-02-10 | Hits:469 ]

Crude oil futures closed down sharply on Monday, with settlement prices at their lowest level in more than a year, marking a bear market for crude oil.

According to the financial times on February 4, the organization of Petroleum Exporting Countries (OPEC) and its allies are preparing to cut oil production urgently after the price of crude oil enters a bear market.

Brent crude oil, the international benchmark, fell more than 3 per cent to $54.27 a barrel on Monday, the lowest level in more than a year and bringing the cumulative decline since the beginning of January to more than 20 per cent, in line with the definition of a bear market, the report said. Brent crude oil futures trend

According to the Wall Street journal, Saudi Arabia is urging OPEC and its allies to sharply reduce crude oil production in the short term in response to the new demand for coronavirus, but the news failed to provide support for oil prices.

The financial times pointed out that the so-called OPEC + group, including core members of oil cartels and allies such as Russia, is considering countermeasures. The group is concerned that oil prices will continue to fall unless action is taken to stem the decline.

OPEC + countries will assess the situation at technical meetings on Tuesday and Wednesday. According to people briefed on the discussions, the focus will be on whether cutting production by 500000 barrels a day is enough to support the market. In December, the core OPEC group produced about 29.4 million barrels of crude oil a day, a figure that is likely to have declined in January, as Libya reduced its production by about 1 million barrels a day.

No agreement has yet been reached, the report said. According to the people familiar with the situation, some Member States believe that more time is needed to understand the full impact of the epidemic on demand. The ministers of these countries were scheduled to meet in early March, but are now expected to meet later this month.

Light crude oil futures for March delivery on the New York Mercantile Exchange closed 2.81% lower at $50.11 a barrel at the end of the day. London Brent crude oil futures for April delivery closed at $54.45 a barrel, down 3.83%.