Texas oil opens with a 3.67% drop, hit by low demand

New York, Mar 27 (EFE) The price of Texas intermediate oil (WTI) opened this Friday with a decrease of 3.67%, to $ 21.77 a barrel, hit by the brutal drop in demand for derived fuel of the restrictions on travel by COVID-19 and in the midst of a price war between Saudi Arabia and Russia, which continue without approximating positions.

At 09:15 local time (13:15 GMT) the barrel was trading below $ 22 after subtracting $ 0.83 from the previous session on Thursday.

Oil prices fell as practically half the world population suffers mandatory isolation and quarantine measures decreed by their governments, which has caused a drop in displacement and a collapse in fuel demand.

It is estimated that the demand for crude oil will suffer up to 20%, reason why some authorized voices such as the International Energy Agency called on the main producers such as Saudi Arabia to stabilize the markets.

Since Russia broke the deck at the last meeting in Vienna, where it was negotiated to extend the current cut in production to stabilize oil supplies and hold prices, Saudi Arabia announced that if there was no agreement, it would press prices until the end and that it would even increase its production capacity by several million barrels per day.

After failing to reach a consensus, as of April 1, OPEC countries and their main allies, such as Moscow, have carte blanche to pump as much "black gold" as they see fit.

According to analysts, in this context of the price war, an uncertain year is approaching in which the price of a barrel may be around $ 20 for much of the second quarter.

So far this year, WTI prices have dropped more than 60% and in recent days it has been unmoved by the news of economic stimuli coming from Washington and that some investors had hoped would help put a floor to the prices, something that so far has not happened.


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