Oil prices fell sharply after the failure of negotiations between OPEC and Russia

This Friday (6), Brent oil had the biggest daily low within the period of 11 years. This came after Russia did not support the Organization of Petroleum Exporting Countries' suggestion to make deep cuts in the value of the commodity. OPEC aimed with its proposal to stabilize the oil price in times of coronavirus outbreak.

In response to Russia's position, the Organization removed its pumping limits. At the moment, the consequence of this is the big drop in the prices of Brent and WTI oils. It can be said that this conflict between OPEC and the Russian country consists of a collapse of the pact between them that has existed for 3 years. Continue reading to learn more about the decline in oil prices.

More information on the oil price drop

With regard to the annual losses of Brent and WTI oils, there has been an accumulation of 30% so far. The price of Brent oil closed on Friday at US$ 45.27. Therefore, the commodity was US$ 4.72 cheaper, which corresponds to a low of 9.4%. This was the biggest price drop since December 2018. Furthermore, since June 2017, the international benchmark for Brent oil has not reached such a low level.

As for WTI oil, more than 1 million contracts for the commodity were traded this Friday. Its price fell by 10.1%, closing Friday at US$ 41.28. Therefore, the value of oil was US$ 4.62 cheaper. Since November 2014, the price drop has not been so sharp. Furthermore, the value of oil has not been this low since August 2016.

Final considerations

Having said that, we News Report we hope to have clarified the main information regarding the drop in the oil price. Comment what you think about the position of OPEC and Russia regarding the value of the commodity. We want to know your opinion on this matter.

Also be sure to follow our website every day. That's because, with our publications, we'll keep you up to date with news regarding the oil price. Furthermore, we will also inform you about the main events related to the economy of our country and other parts of the world. Therefore, stay tuned to always check the content of our texts!

Source: G1