Oil storage capacities could be exhausted within weeks, forcing further price drops.
The slowdown in the world economy, resulting from the Covid-19 pandemic, and Saudi Arabia’s decision to release more oil for export in the context of the price war with Russia are at the root of the phenomenon.
This Wednesday, Brent’s price was quoted at $ 25 a barrel, a decrease of almost 5% compared to previous days. In early 2019, it was around $ 60 a barrel.
Another type of oil more sensitive to price changes, the Canadian WCS, was now priced at just over four dollars a barrel. In January 2019, it sold for $ 34.
Signs that the Riyadh decision, taken three months after the failure of OPEC negotiations with Russia to reduce production, are having an effect and amplifying those resulting from the impact of the outbreak of the new coronavirus on economies.
Read more in Plataforma
