At the opening of trading, Brent oil was worth $ 35.85 per barrel, but at 13.55 it dropped to $ 30.28.
March 16, the value of the May futures of Brent benchmark crude oil during trading on the London Stock Exchange fell below $ 31 per barrel, according to trading data.
At the opening of trading, oil was worth $ 35.85 per barrel, but fell to 13.55 to $30.28.
Since the beginning of the day, Brent oil has fallen in price 10.69%, or $ 3.62.
The cost of North American WTI oil to 13.55 fell to $29.45 per barrel. Since the start of trading, its price has decreased by 7.94%, or by $2.55.
As of 14.10 Brent is trading at $30.59 per barrel, and WTI – by $29.88.
Reuters notes that the price ratio Brent and WTI is approaching 2016 figures that makes American crude oil uncompetitive in international markets.
In general, according to trading data, over the past year Brent fell in price on 51.31%, and WTI – on 46.29%.
Reuters attributes the drop in oil prices to a decrease in the US Federal Reserve target range for federal funds to 0–0.25%. This decision was made on March 15 at an unscheduled meeting in order to protect the country’s economy from the influence of the coronavirus pandemic.
On March 9, the price of Brent oil fell 30% to $ 33 per barrel. This collapse was the highest daily fall since 1991, since the Persian Gulf War. After the morning collapse in oil prices, stock indices of a number of countries fell sharply. But from March 10, oil prices began to rise.
The fall in oil prices followed after Russia and the Organization of Petroleum Exporting Countries were unable to agree on a new restriction on oil production. As a result, from April all restrictions will be lifted.
The international rating agency S&P Global Ratings believes that by the end of 2020, the average price of Brent oil will be $ 40 per barrel (previously agency forecasted $ 60).