Japan crude oil prices fall 30%
Tokyo … News Time
Japan’s crude oil prices recorded a near 30 percent decline, which is due to the world-leading exporter, Saudi Arabia, announcing a massive drop in prices and a rise in production in April. Saudi Arabia made the move after failing to reach a production cut agreement with OPEC and other oil-exporting countries for price stability, according to media. Brent North Crude prices fell $ 13.29 to $ 31.98 a barrel at 1:33 (noon) on Monday in Tokyo. West Texas Intermediate (West Texas Intermediate) deals were down 32 percent to $ 27.99 a barrel.
Oil prices fell more than 20% in Asian markets
On the other hand, oil prices fell more than 20% in the Asian market on Monday, which analysts call a price war. Saudi Arabia, the world’s largest oil exporter, announced a drop in oil prices this weekend when he failed to convince Russia on Friday that Moscow would reduce its oil production rapidly. OPEC and its ally Russia, a group of oil-producing countries, had previously worked together to curb oil production. Brent Oil’s futures range fell to US $ 35.84 a barrel on Monday in the energy market. In a way, oil prices have dropped by 30% since Friday. On Friday, OPEC, a 14-nation organization led by Saudi Arabia, held talks with Russia and non-OPEC members. They met to deal with the drop in demand for oil due to the outbreak of the coronavirus virus. But the sides could not agree on 1.5 million barrels per day oil production and its mechanism. That led to Brent initially falling below $ 50 a barrel on Friday, and the downward trend was also seen in Asia on Monday. The region is home to some of the largest oil importing countries, including China, Japan, South Korea and India.
The Saudi stock exchange saw a drop of over 6% yesterday. Global oil production is surpassing demand, and Morgan Stanley analyst Martin Reitz says member states of OPEC will extract more oil to dominate the market. Mr Reitz said: In the current situation, for the OPEC countries, there is no benefit to curb production and the oil market is seemingly in excess of demand. Overall, the price of oil was earlier at that level in January 2016 and is near the lowest price in the last 16 years. Vandana Hari, an energy analyst at the Vanda Insights Company, says the market could fall as Russia and OPEC countries refuse to reduce production and last year, the United States became the world’s largest oil producing country. Vandana Hari told the BBC: The collapse of the OPEC and non-OPEC alliance has hurt the oil market and it has come up with the challenges of an unspoken permanent.
