A barrel of brent oil is being traded in on Monday for a little over 33 dollars a barrel, a decline of more than 20 per cent of the approximately 45 to the dollar and to the lowest level in several years. At the beginning of January, the price is closer to $ 70.
as the Fall continues in the direction of landing, on a level with the largest price drop since the Gulf war in January 1991. Also, the fatpriset for WTI oil prices have seen a similar race then, with the outbreak of the new coronavirus.
the Cause of the last days of the breed can be traced back to the fact that saudi Arabia has completed a major reduction in the price of a 20-year, " reports Bloomberg News. The price war comes after negotiations between the Opecländerna, and Russia, broke down last week.
" What this reflects is two things. This is partly because there is a disagreement whether curtailing our production in the extension of the petroleum exporting countries, where the Saudi's have said that it is in principle possible to open the taps, which puts pressure on prices from the supply side, " says Robert Bergqvist, SEB's chief economist, who calls the trend is very dramatic.
" at the same time, there is, on the demand side, all of which can be linked to the new coronavirus and how it will have an impact on the global energy market, the fall had occurred in the morning also, but the saudi position gained traction acting on the basis of a wide-spread konjunkturoro, but all in all, it has led to a huge movement.
the major oil-producing countries, it was suggested that it would impose restrictions on oil production in the wake of the new coronavirusets distribution. Russia nobbade it.
In what was seen as a way to punish Russia, saudi Arabia responded by lowering their prices on the aprilleveranserna to Asia, with up to six dollars per barrel. For US, the price has been reduced by seven dollars a barrel.
If you look at this as a oljepriskrig, that is to say that the supply is on the increase, it could be a good thing for the world economy, the need to energy lower the costs and to households more purchasing power, according to Robert Bergqvist. Nordea's chief economist Annika Winsth will agree with me, but, like him, she stresses the concern.
– Because the prices are lower, more people consume oil, that is to say, basically, it is a counter-cyclical way, but there are so many other things that are messy now, so I think this is a orossignal. This is coupled with the fact that the stock markets will open down, not in the least the Norwegian one, due to the oil, and it is likely to have knock-on effects, " says Annika Winsth.
" Then we have a virus that we don't have a clue as to how long it's going to be, and that is what it is, is the worst of the markets, they are prepared to deal with the risk. In contrast, for example, from the financial crisis, there is no-one to be an economist, a politician, or agency director that can say, ”well, if we are to do this, so it goes in the right direction”. And, unlike the previous two infections, they have not had the same dimensions, and they have not been to Europe, it is quite unique.<