Oil Prices Fall Below The Last 2.5 Years

Oil Prices Fall Below The Last 2.5 Years

The price of Brent oil fell as low as $ 47.02, the lowest level since July 2017. Crude oil prices were down nearly 4.6 percent ahead of the decision by the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC crude oil-producing countries to cut. A further failure to announce a decision on additional production cuts at the ongoing OPEC meeting in Vienna, the Austrian capital, has led to a fall in oil prices. The price of a barrel of Brent-type crude, which closed at $ 49.99 yesterday, was $ 47.80, while the price of a barrel of WTI-type crude was $ 43.84. Coronavirus emerging in China and affecting the world is negatively affecting global economic upturn and demand for crude oil. This situation creates a downward momentum on prices. Yesterday, in Vienna, OPEC and some non-OPEC crude oil-producing countries agreed to cut their total oil production by another 1.5 million barrels per day. An additional 1 million barrels of daily cuts were proposed to be made from OPEC and 500 thousand barrels from non-OPEC countries. Not knowing exactly how much Russia, the largest oil producer of non-OPEC countries, will cover for the additional 500 thousand barrels of cuts, supports the fall in prices.