July 29, 2021

Brent collapses 26% to $ 33.36, minimum since 2016

The price of Brent crude – the benchmark in Europe – sank at the beginning of this Monday’s session by 26.31%, to stand at 33.36 dollars, a level that has not been listed since February 2016.

According to the data reflected by Bloomberg for the futures market, the price of crude oil collapsed after the alliance between OPEC, Russia and nine other oil producers failed last Friday in Vienna, for the first time since it was forged in 2016, not achieving a commitment on a new cut in the joint supply of crude.

A day earlier, the Organization of Petroleum Exporting Countries (OPEC) unanimously agreed on Saudi Arabia’s initiative to withdraw 1.5 million barrels from the market to curb the fall in demand triggered by the coronavirus.

According to Bloomberg, the failure of the negotiations has caused a price war between Saudi Arabia and Russia, which can lead to the price of black gold can sink to around $ 20 per barrel, Goldman Sachs has warned.


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