During the trading session Monday, oil futures showed the most significant day decline since 1991. In particular, the quotations of Brent have fallen by more than 20%, reaching the lowest level since February 2016, at $ 31.26 per barrel. Aggressive sales traders reacting hydrocarbons become the collapse energy alliance pact which to 2016, served as the price of stabilizer while maintaining the cost of oil during periods of economic and commercial uncertainty.
It all started on Friday when Russia rejected the proposal by Saudi Arabia to further reduce oil production. Recall that the current agreement on the reduction expires April 1, 2020 and continue his Russia has no plans in the aftermath of the spread of coronavirus infection. In response to Russia's decision to increase from April 1, the volume of oil production, Saudi Arabia, for its part, has also pledged to increase production by more than 2 million. Barrels per day. In addition, on Saturday March 7 the state-owned Saudi Aramco lowered the official selling price to its lowest level in 20 years, thus unleashing a price war with Russia. Thus, the oil market remains without a single support, namely the joint action participants pact, which could weaken the current pressure on prices.
oil pressure and continue to fear for the prospects of global economic growth, due to an epidemic coronavirus. In mainland China the number of cases has reached 80754. In the UK, the number of infected people in the country increased by 30% to 321 people, the maximum number of patients in London. In Italy, the virus have died already 463 people, while the number of patients has increased dramatically over the weekend prior to 9172. It is worth noting that on the hydrocarbon market has developed a combination of factors in the form of a shock on the supply side as well as the reverse shock on the demand side (lower consumption due to coronavirus ). Last time something similar was observed almost 100 years ago, during the Great Depression. Taking this into account, the reduction of oil could well continue.
Brent SellStop 35,60 TP 32,50 SL 36,10
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