As of 14.50, May oil futures were trading at $ 27.51 a barrel. This is 4.25% less than at the close of the previous trading day.
March 18, the value of the May futures of Brent crude oil during trading on the London Stock Exchange fell below $ 28 per barrel, according to trading data.
As of 14.50, May oil futures were trading at $27.51 per barrel. it 4.25% less than at close previous trading day.
Reuters writes that these are the lowest prices for Brent since 2016.
On March 16, oil surpassed the psychological mark of $ 30 per barrel.
The fall in oil prices has continued since early March. The main reason was that Russia and the Organization of Petroleum Exporting Countries could not agree on new restrictions on the level of oil production. By March 9, the price of Brent oil fell by 30% to $ 33 per barrel, which was the maximum daily drop since 1991, when the Gulf War began.
Goldman Sachs – one of the largest investment banks in the world – believes that the spread of coronavirus infection will continue to negatively affect the market. He predicts that in the second quarter of 2020, the price of Brent will drop to $ 20 per barrel, writes FXStreet.