European markets collapse amid sharp decline in oil prices

Source : 112 Ukraine

Largest drop in Europe recorded in the Italian FTSE MIB index
18:00, 9 March 2020


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.

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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).

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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.

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