Coronavirus: Oil price collapses to lowest level for 18 years

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Oil prices have sunk into the level since 2002, with the needs of the original Crash among the coronavirus pandemic.

Brent crude oil dropped to $ 23. 03 barrel of a little Monday morning, the lowest level since December, 2002.

At the same time, the price of U.S. West Texas Intermediate(WTI)fell to $ 20 a barrel nearby as well as an 18-year low.

The price of oil has fallen by more than half in the past month as companies cut back or shut down production.

In addition, the decline in demand, the price war broke out before this month between Saudi Arabia and Russia.

This started when Saudi Arabia failed to convince Russia of the production cuts already agreed to with other members of the OPEC oil producers group.

This decision was taken because the refineries around the world are processing less crude oil and the transportation requirements finalized by ground Airlines and fewer cars on the highway as a national blockade the business of fighting the coronavirus.

However, one analyst said, after the collapse of demand measures the spread of the coronavirus is now the main factor.

“Oil prices can’t maintain speed, growing(Cov)of the locking measures, and reports say that it may push the global demand decreased by 20%, could push the world runs out of storage capacity,”said Morgan Stanley analyst Devon McDermott, on the grounds that expected by the Paris-based International Energy Agency.

Rock oil producers in the US particularly hard hit by the slump in prices since the beginning of March.

There are more and more calls for us to suspend royalty payment of costs from drilling and buying more oil to fill our Strategic Petroleum Reserve, or a state, such as Texas, limit the production, McDermott, Mr. Said. The U.S. is now the world’s top oil-producing countries.

“Since the 1930s, States have the right to limit oil and gas production to support oil prices,”McDermott, Mr. Said.

“Although this practice is not widely used today, both Federal and state regulators still have the ability to place restrictions, production levels.”

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