The drop in oil prices intensified in the course of trading Monday amid allegations of Saudi Arabia and fears of a reduction in demand in the current year due to the outbreak of coronavirus COVID-19.
Quotes may futures for Brent crude on London’s ICE Futures exchange to 17:13 kV dropped by 8.74% to $30,89 per barrel. In the course of trading, the price fell below $30 per barrel for the first time in 2016.
The April futures for oil WTI in electronic trading on the new York Mercantile exchange (NYMEX) by this time fell by 5.14% to us $30.1 per barrel.
The head of the state oil company of Saudi Arabia Saudi Aramco said in a conference call that the company is comfortable with the price of oil at $30 per barrel and below. He noted that the company in April, intends to supply 12.3 million barrels of oil a day from 9.7 million b/d in March, volumes at a later date will be specified.
“Our maximum capacity is 12 million barrels of oil per day. We reported about plans to deliver in April to 12.3 million barrels of oil per day. Another 300 thousand barrels per day will come from our reserves,” said Nasser.
World oil demand in 2020 can demonstrate the largest in the history of the decline against the background of unprecedented measures taken in many countries to combat the spread of coronavirus, according to Bloomberg. At the same time, the largest oil producers plan to increase production after the collapse of the deal, OPEC+.
Many traders, executives and analysts fear that oil demand in 2019, on average amounting to 100 million barrels per day (b/d), show the maximum fall this year, which in its scale will surpass the decline in demand of 1 million b/d during the recession in 2009 and even a drop of 2.65 million barrels per day, recorded in 1980, when the world economy collapsed after the second oil crisis.