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Oil prices collapsed after the failure of Saudi Arabia to halt price war

Нефть рухнула после отказа Саудовской Аравии прекращать ценовую войну

The oil market was again derailed during the Tuesday amid gloomy forecasts of the International monetary Fund predicted the world’s worst recession since the 1930s, and the decision of Saudi Arabia to increase their grades to customers in Asia Europe.

Futures on the mark Brent on London exchange ICE fell below $ 30 per barrel, to 29.39 dollar, wasting the time of more than 7%, but pared some of the collapse to the end of the session, ending it with not a mark 30,07.

The American variety of WTI fell by 7.6% to 20.7 dollars per barrel, and in the course of the session fell to 19.96 dollars – a new low in two weeks.

On Monday, the state oil company of the Kingdom of Saudi Agama published price list for may, which made clear that to end the “price war” is not planning.

 

Riyadh has upheld an unprecedented discount on shipping in North-Western Europe and increased them for deliveries to the Mediterranean and Asia.

The key for the Saudis, the Asian market Arab Super Light grade will drop by 5.5 per dollar for the first time in history will be sold with a discount of 3.65 dollar to the price of the benchmark Oman/Dubai.

Grade Arab Extra Light will drop by 4.3 per dollar, Arab Light – 4.2 per dollar, heavy grades, Arab Medium and Arab Heavy will be cheaper by 3.35 and 2.95 dollar respectively.

Sharply lower prices for southern European countries. The discount for Arab Extra Light will increase almost twice – from 5.8 to 10.3 per dollar to the price of Brent, Arab Light on will increase from 8.6 to 10.3 per barrel on heavy grades of up to 11.4 per dollar.

 

For North-Western Europe will remain in force discount 10.25 dollar, the price of ultralight oil Arab Extra Light will be reduced by 80 cents to minus 8.9 per us dollar to Brent.

The only market where Saudi Aramco has agreed to stop the price war, became an American. For the US, Saudi oil will rise in price across the range of grades – 2.5-4.2 dollar per barrel.

The deal OPEC+ reduction of production at 9.7 million barrels per day little changed picture of the market. The excess supply is 25 million barrels per day, said in an interview with Bloomberg on Tuesday, the head and co-owner of Gunvor torbjörn törnqvist.

According to him, closed about 12 million b/d of refining capacity, and after 3-4 weeks all the tanks available for oil storage, overflows.

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