The next step of Saudi Arabia in a price war with Russia made oil quotes survive a new round of free fall. On Wednesday, the price of May Brent crude futures on the London ICE Futures exchange fell by 14.7% to $ 24.52 per barrel, the lowest since 2003, INTERFAX reported.
Now, according to MarketWatch, a slight correction has occurred - futures are worth $ 25.94 (a decrease of about 9.7%).
On Wednesday, the Saudi Ministry of Energy ordered the Saudi Aramco state-owned company to keep oil supplies at 12.3 million barrels per day, which should be achieved in April after the collapse of the OPEC + deal for several months. At the same time, Riyadh not only "opened the tap", having sharply increased supply in the market suffering from low demand due to coronavirus, but also offered significant discounts on the price of its oil for buyers from Europe, Asia and the USA.
At the moment, the fall in prices relative to the level at which they were before the collapse of the OPEC + transaction is about 45%.
"What we are seeing is essentially the equivalent of an atomic explosion for the oil markets," said Rystad Energy analyst Louise Discon quoted Bloomberg. She expects prices to continue to fall until a balance point with cost is reached and production begins to decline.
The price of WTI oil on the New York Mercantile Exchange (NYMEX) on Wednesday fell by a quarter (25.6%), to $ 20.05 per barrel - the lowest since 2002. As part of the correction, the price rose slightly - to the level of $ 21.74.