The failure of OPEC conversations drops the oil prices

09/03/2020

The price of American crude, West Texas, fell to less than $ 30 a barrel, influenced by the decision of the Kingdom of Saudi Arabia to reduce the price of its crude oil in response to the failure of OPEC talks to reach an agreement on reducing production to maintain the stability of oil prices that have fallen since the beginning of the current year, the decline in the price of US crude from $ 64 A barrel affected by the emergence of the corona virus and the decline in Chinese demand, the largest consumer of crude oil in the world.

In the chart shown, the price of a barrel falls below $ 30, which is the lowest price reached by the barrel since February 2016, and it shows a drop in the New York Stock Exchange index for the oil sector, which consists of the prices of the 12 largest companies in the mining, refining and petroleum industries.

As for the following chart, Aramco’s share price fell about 9% yesterday, Sunday, March 8th, to 30 Riyals, which is the lowest price the stock has reached since its launch on the market.

With the continued failure of negotiations within OPEC and the possibilities of increasing the supply in the market, as the Kingdom of Saudi Arabia has the possibility to raise the supply to 12.5 million barrels per day from its current production, which amounts to 9.7 million barrels per day, which may affect oil prices with further decline, which may reach The level of 20 barrels per day.