The barrel of Brent crude continued its recovery on Tuesday, advancing 8.1% over 14.45 GMT, after the resounding fall of the beginning of the week caused by the price war started by Saudi Arabia and between the growing fear caused for the coronavirus epidemic.
Crude oil from the North Sea for delivery in May began today trading at $ 36.85, 7% more than at the end of the previous day; fell slightly around 08.47 GMT hours, up to $ 36.51 and rebounded again about 14.45 GMT, until trading at $ 37.15, 8% more than at its close on Monday.
The Brent, a reference in Europe, which is listed on the International Exchange Futures in London, collapsed on the eve 30%, the most striking sinking since the first Persian Gulf War (1991).
That remarkable collapse was mainly due to the decision taken by Saudi Arabia, the world’s largest oil producer, to lower the price of its exports, although another major factor has been the panic unleashed worldwide by the rapid spread of COVID -19.
The fall came after the alliance between OPEC (Organization of Petroleum Exporting Countries), Russia and nine other 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, OPEC had unanimously agreed on Saudi Arabia’s initiative to withdraw 1.5 million barrels from the market to stop the fall in demand triggered by the coronavirus.
The so-called black gold was already tracing a downward trajectory in recent weeks due to the epidemic of the Chinese respiratory virus, which has severely weighed markets around the world.
Some analysts have expressed concern that the price war will result in the sinking of oil up to about $ 20 per barrel, unless the Saudis and Russians return to negotiation.