on Friday, negotiations broke down between production among OPEC countries, states, many of the oil-producing countries, and, in particular, the Russian federation. Saudi arabia then decided to increase the rate of production, and to increase the amount of oil on the world market.
there is already a surplus of oil on the world market, and this is compounded by the spread of the new coronavirus. It has, for example, greatly limited the flying in the world. When the oil producers failed to agree on a cut in production led to a oljepriskrig.
it will be noticed that we will get cheaper petrol and diesel, respectively.
But at the same time, it is one more sign that the global economy is reeling. It was, of course, that the demand for oil did not match the range of the petroleum exporting countries wanted to have the production.
All of the signals to be pushing the economy, and the growth rate even more, so even if oil gets cheaper, it is not an indication that more growth is on the door, rather quite the opposite.
that is Why the stock markets in Asia fell sharply in Monday's trading. Tokyobörsens the Nikkei 225 index, for example, fell by more than five per cent. And we have to expect that there will be further fall in european stock markets as well. The oslo stock exchange, with many of the oil companies, you can be hit by a kursras of ten per cent, according to some estimates.
the price of Oil is plummeting sharply.
the stockholm stock exchange plummeting by 6.8 per cent.