Due to the disruption of the OPEC + agreement, Saudi Arabia intends to increase oil production in April 2020 to 12 million barrels per day, which led to a sharp decrease in its cost and a drop in European stock markets.
So, on March 9, financial markets began to lay down the likelihood of massive bankruptcies in the energy sector and the global recession after the oil price fell by 30%.
The largest drop in Europe was recorded in the Italian FTSE MIB index: -10%, and the least financial crisis affected Turkey: -4.2%. In general, the situation in European stock markets is as follows:
- Norway: -8.9%;
- Spain: -7.5%;
- France: -7.2%;
- Germany: -7.1%;
- Netherlands: -7.1%;
- UK: -6.8%;
- Sweden: -6%.
Outside Europe, the situation is not better:
- Saudi Arabia: -7.2%;
- Australia: -6.6%;
- Indonesia: -6.6%;
- South Africa: -5.5%;
- India: -5.4%;
- Japan: -5%;
- South Korea: -4.2%.
As we reported before, As of 9:45 a.m. March 9, the price of a barrel of Brent oil was $ 33.92.
Due to the OPEC + deal-breaking, immediately after the market opened, world oil prices fell by 31%, reaching 31.43 USD per barrel (at the time the market closed on March 6, the price was 45.27 USD).
Later, the price was adjusted, and currently fluctuates around 34-36 USD per barrel (drop is more than 20%).
The cost of WTI crude oil fell by 26%, to 30.7 USD per barrel. Its price is traditionally lower than the price of Brent oil.