The great crash of 1929, the twin oil shocks of the 1970s and the global financial crisis do not come close/Bloomberg
by BloombergOil has slumped to a 17-year low as coronavirus epidemic lockdowns spill through the world’s largest economies, leaving the market overwhelmed by cratering demand and a ballooning surplus of crude.
Physical oil markets are struggling to store fuel, hit by the COVID-19 epidemic restrictions eroding demand and a damaging war for market share between Saudi Arabia and Russia that has prices on track for the worst quarter on record.
Saudi Arabia said that it had not had any contact with Russia about production curbs or enlarging the OPEC+ alliance of producers. Similarly, Russia also doubled down, with Deputy Energy Minister Pavel Sorokin saying oil at $25 a barrel is unpleasant, but not a catastrophe for the country’s producers.
OPEC nations are not giving support to a request from the group’s president for emergency consultations over tanking prices. Algeria, which holds the group’s rotating presidency, has urged the secretariat to convene a panel but the call has failed to gather the majority backing necessary to go ahead.
The world normally uses 100 million barrels of oil day, but forecasters predict as much as a quarter of that has disappeared in just a few weeks. The great crash of 1929, the twin oil shocks of the 1970s and the global financial crisis do not come close.
According to the International Energy Administration, global oil demand is in freefall and consumption may decline by as much as 20 million barrels a day.
MOST READ
BUSINESS
Fed rate cuts add pressure on Saudi banksBUSINESS
ING Groep plans to sell its Turkish unitBUSINESS
Bahrain considers stake sell in oil assetsBUSINESS
SABB seeks to boost corporate lendingBUSINESS
Dubai’s W Motors seeks funds to go electricBUSINESS
HSBC considering exiting from TurkeyBUSINESS
Zimbabwe turns to UAE to sell a stake in...BUSINESS
ADIA plans to sell a $2 billion stake in...BUSINESS
Amanat considers stake in VPS HealthcareBUSINESS
ECI, HSBC partner to support UAE businessesBUSINESS
National Bank of Oman to exit from EgyptBUSINESS
Salt Bae backers seek a partner and a $1...BUSINESS
Oman plans to launch new regional airline
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
