Saudi Arabia and Russia have decided to part ways. Let’s see what happened with Crude Oil price
Oil market crashed more than 30% after the disintegration of the OPEC+ alliance triggered a war price between Saudi Arabia and Russia. This alliance ends a cooperation between Saudi Arabia and Russia that has underpinned Oil prices since 2016.
Crude Oil prices are on downward spiral after Russia didn’t agree to the OPEC’s proposal for an additional production cut of 1.5 million barrels per day.
The Oil markets are at the worst price dip since the 1991 Gulf War as Brent prices are down to $31.02 per barrel. U.S. crude Oil Futures went down with 10.1% to $41.28 a barrel, the lowest level since August 2016 and the biggest drop in more than five years. Goldman Sachs sees Brent Crude prices averaging $30 in Q2 and Q3, with risks of falling to $20.
Most economists estimate that cheaper Oil translates into lower Gasoline prices, which act as a de-facto tax cut for consumers,
Low prices on energy are bad news for U.S. Oil and Gas firms. With the U.S. shale boom already facing numerous threats, and OPEC+ price war may be a net negative for the domestic economy.
Sources: investors.com, investing.com, livemint.com
*The information presented herein does not constitute and does not intend to constitute Investment Advice. The information contained herewith is a compilation of public stock recommendations issued by various financial analysts and organized by third parties in an easily presentable format, for informational purposes only. Key Way Investments Ltd does not influence nor has any input in formulating the information contained herein. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. Users/readers should also consider the risk of encountering significant losses when trading CFDs. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results. Trading Contracts for Differences (CFDs) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.93% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Gli utenti / lettori non dovrebbero fare affidamento esclusivamente sulle informazioni qui presentate e dovrebbero fare le proprie ricerche / analisi anche leggendo la ricerca reale sottostante. Il contenuto è generico e non tiene conto di circostanze personali individuali, esperienza di investimento o situazione finanziaria attuale.
Pertanto, Key Way Investments Ltd non accetta alcuna responsabilità per eventuali perdite di trader a causa dell'uso e del contenuto delle informazioni presentate nel presente documento. Le performance passate non sono un indicatore affidabile dei risultati futuri.