Financial and business news from Bulgaria

Oil collapsed to prices since the beginning of the 21st century

World oil prices continue to go down, WTI variety dipped to $23 a barrel — a price the market had last seen on March 6, 2002.
As of 19.19pm Bulgarian time, the price of the May futures of the North Sea oil mixture Brent variety dipped to 11.7% to $25.37 per barrel. The price of May oil futures variety WTI cheaper by 17.23 per cent to $22.62 per barrel.

Pressure on oil quotes is exerted by US Department of Energy statistics on “black gold” stocks in the pelvic country. Last week, they grew by 2 million barrels to 453.7 million. Analysts were expecting growth of the indicator by 3.3 million barrels, BGNES reported.

According to data from the organisation Joint Petroleum Statistics Initiative in January, the US increased oil production by 1.5% to 12.779 million barrels per day.

The fall in oil prices began on March 6 after OPEC+ countries failed to agree on changing the parameters of the deal to cut output as well as its continuation. Russia was proposing to preserve existing conditions and Saudi Arabia to further cut oil production. Since then, prices have collapsed almost twice. In early March, the oil price of both varieties was moving in the $48 range.

“For the Russians and Saudis waging a fierce fight for market share, it is difficult to find a quick solution to the problem... The only thing that can prompt them to sit back at the negotiating table again is even lower prices,” according to ING Bank analysts, as quoted by Reuters.

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Administrator • 2020-03-14 13:30:20