The Sharp Decline in Oil is Expected to Affect Saudi Arabia, Russia and the USA Negatively

The Sharp Decline in Oil is Expected to Affect Saudi Arabia, Russia and the USA Negatively

  Russia, which has reduced its oil production to a low level 3 times in the last 4 years, aims to keep the drop in oil prices for a certain period of time and to get a certain amount of the USA's rock oil producers out of the market. Due to the fact that Saudi Arabia and Russia cannot agree on making additional cuts in crude oil production, the lowering of prices to the lowest level in the last 4 years will create a negative effect on the oil production of the USA rather than the economies of these two countries. Saudi Arabian-led Petroleum Exporting Countries Organization (OPEC) and some non-OPEC-led oil-producing countries failed to agree on additional production cuts during a 7-hour meeting in Vienna on Friday, causing sharp declines in prices. Today, the barrel price of Brent crude oil fell to $ 31.27, while the barrel price of the US West Texas (WTI) crude oil dropped to $ 27.34. As a result, crude oil prices have dropped to their lowest levels since February 2016. It also recorded the sharpest daily loss on a percentage basis since the Gulf War in January 1991, with a decline of more than 30 percent.