On March 18, Russian President Vladimir Putin’s press secretary, Dmitry Peskov said that Russia certainly wants the oil price scenario to be improved but Moscow will still not come to OPEC to discuss measures to boosting oil prices.
|Russia continues to update has no intention of meeting with OPEC.|
“Of course, it is a low price. We want to see it higher and are closely monitoring the situation in the global oil market, analyzing them and,” Bloomberg quoted the Kremlin spokesman as saying. try to make forecasts for the near future as well as the medium term “.
The Russian Ministry of Finance previously affirmed that the country’s budget had accumulated $ 150 billion, so it would be enough to help the economy sustain for 6 to 10 years if the oil price drops to $ 25-30 per barrel.
Russian Energy Minister Alexander Novak said that Moscow continued dialogue with many countries inside and outside OPEC, but did not specify any details.
The announcement came after Iraq, OPEC’s second-largest producer, urged the organization and non-OPEC members to hold an emergency meeting to regulate oil prices.
Iraqi Oil Minister Thamer al-Ghadhbam asked OPEC Secretary General Mohammad Barkindo to hold additional OPEC + meetings to discuss all possible ways to regulate the oil market and limit problems. negative.
Saudi Arabia has entered tensions with Russia after Moscow refused to cut production by 1.5 million barrels a day.
Saudi Arabia-owned ARAMCO group director Amin Nasser said they would increase production to 12.3 million barrels a day by April 2020.
In addition, Saudi Arabia has agreed with Kuwait in resuming operations in common oil fields to contribute to increase production for ARAMCO by 2 million barrels a day in the next few weeks.
In addition, Saudi Crown Prince Bin Salman is preparing emergency funding for this year with the scenario of oil price at 12 USD / barrel.
Not only Iraq, but other OPEC members such as Venezuela, Mexico and even the US Senators have sent signals to Saudi Arabia to quickly take concrete action to boost oil prices in the market.
Crude oil market continues to plummet before the gloomy news from the energy giants.
Closing the trading session on March 18, Brent crude oil dropped by 3.85 USD or 13.4% to 24.88 USD / barrel, sometimes touching 24.52 USD / barrel, the lowest since 2003. West Texas WTI crude oil fell $ 6.58, or 24.4%, to $ 20.37 / barrel.
In the past 10 days, US crude oil prices fell 56%, more than half the value when schools and businesses closed, governments around the globe urged residents to refrain from gathering.
This is the sharpest decline since 1983. In a report on March 18, Goldman Sachs said global demand for crude oil by the end of March 2020 could sharply decline from 8 to 9 million barrels a day. and forecast that Brent oil price may drop to 20 USD / barrel in Q2 / 2020.
Rystad Energy forecast more optimistic, that global oil demand in 2020 will reduce 2.8 million barrels / day equivalent to 2.8%.
The lack of optimistic news of the crude oil market continued to drag the US stock market down, despite efforts to consider the US $ 1,000 billion economic bailout package from the White House.
In the session on March 18, Wall Street stock prices continued to plummet. According to CNBC, the Dow Jones index evaporates to more than 6.5%, equivalent to 1,400 points because investors are concerned about the impact of the new strain of corona virus on the US and global economy. S&P 500 and Nasdaq indices fell 6.1% and 5% respectively.
The administration of US President Donald Trump has previously announced that he is considering a bailout package of $ 850 billion to over $ 1,000 billion to protect the economy.
Under this plan, the Washington government will support each US adult 1,000 USD. The market rebounded a little on March 17 but on March 18 continued the previous decline.
According to US Treasury Secretary Steven Mnuchin, the country’s unemployment rate will skyrocket to 20% if Congress fails to approve the US $ 1,000 billion stimulus package soon. Some financial experts forecast up to 90% of the probability of the US economy falling into recession.
Business Insider quoted analyst Han Tan of FXTM that the fear of COVID-19 epidemic is an obsession of the stock market.
“If the government cannot control the new strain of corona virus soon, investors are concerned that the global economy will fall into recession,” he said.