13:46 GMT02 April 2020
Listen Live
    Business
    Get short URL
    Oil Prices Slump, Coronovirus Fears Send Global Economy Into Turmoil (36)
    11126
    Subscribe

    Oil prices fell by more than 30 percent on Monday, in the wake of OPEC oil producers’ failure to agree on deeper production cuts. The value of April futures for WTI crude oil fell by 31.35 percent to $28.33 per barrel.

    Oil prices bounced back slightly on Monday after registering a 30 percent drop on the news that Saudi Arabia was seeking to reclaim its share of the crude market after a pricing dispute with Russia.

    Brent futures for March delivery climbed to $36.60 dollars per barrel, a decrease of 19 percent. West Texas Intermediate (WTI) futures for April slumped 20.13 percent to $32.97 per barrel.

    Both crude benchmarks were reported to have crashed by more than 30 percent earlier in the day to four-year lows amid fears of an oil trade war between the two major producers who failed to agree deeper output cuts last week.

    New messages
    • 18:39

      Moscow Exchange to Expand Price Corridor Boundaries on Tuesday Amid High Market Volatility

      MOSCOW (Sputnik) - The Moscow Stock Exchange will take action on Tuesday to expand the boundaries of price corridors for the most liquid assets amid significant market volatility, according to a statement released by the exchange on Monday.

      "Taking into account the current price dynamics and volatility within the most liquid assets (currency, liquid stocks, commodities, derivatives on indices), from the start of trading on March 10, the exchange will establish extended borders on price corridors, the values of which will be determined based on the market situation in the morning before the opening of trading on March 10," the statement read.

      The Moscow Stock Exchange noted that it will act in strict accordance with all regulations that govern trading. This will ensure the continuity of trading under any market conditions.

      "In all exchanges … when the price of the boundaries of the established price range [trade limits] is reached, they are automatically expanded, providing market participants and their customers the opportunity to complete transactions in conditions of high volatility," the statement read.

      Stock markets across the world tumbled on Monday, amid fears over the coronavirus disease, officially named COVID-19, and the fall in global oil prices after the OPEC+ deal collapsed. European markets fell by as much as 11.17 per cent during the course of the day's trading.

    • 17:51

      London Exchange Closes With Russian Companies Losing 7-22%

      MOSCOW (Sputnik) - Russian companies listed on the London Stock Exchange (LSE) took a hit on Monday with Lukoil and Rosneft shares plunging by over 20 per cent, stock exchange data showed.

      The cost of Rosneft's and Lukoil's global depository receipts (GDR) plummeted by 21.43 and 22.13 per cent to $4.53 and $62.98 respectively, while Novatek's shares dropped by 19.96 per cent to $111.5. Meanwhile, Gazprom and Gasprom Neft shares decreased by 17 and 16.88 per cent to $4.55 and $22.9 respectively.

      Nornikel's shares fell by 10.81 per cent to $28.89, while Severstal suffered a 7.91 per cent loss in its shares' cost that reduced to $10.94. Another steel manufacturer, NLMK Group, saw its shares fall by 14.49 per cent to $14.93.

      As for the banking sector, VTB's and Sberbank's stocks plunged by 11.93 and 18.01 per cent to $105 and $10.61 respectively. Meanwhile, shares of TCS Group Holding that includes Tinkoff Bank decreased by 17.18 per cent to $14.08.

      GDR of AFK Sistema dropped by 15.31 per cent to $3.65 and that of Magnit reduced by 16.77 per cent to $8.35.

    • 17:34

      European Stock Markets Close Up to 11% Lower Amid Oil Trade War Fears

      MOSCOW (Sputnik) - European stock markets closed sharply lower on Monday after fears of an oil price war among exporting giants compounded by the coronavirus impact triggered a sell-off.

      FTSE 100, a benchmark for the UK’s largest companies, plummeted 7.69 per cent to 5,965.77 points after Shell and BP saw their shares fall.

      French CAC 40 dived 8.39 per cent to 4,707.91 points, while Germany’s DAX lost 7.94 per cent, landing on 10,631.63 points.

      Italy’s stock market index FTSE MIB was hit the hardest, posting an 11.17 per cent loss and plunging to 18,475.91 points, its biggest fall since the 2008 financial crisis.

    • 17:30

      US Urges Ships to Take Photos of Illegal Oil Transfers - State Dept. Officials

      WASHINGTON (Sputnik) - The United States urges ship captains to take photos of any illegal ship-to-ship transfers of sanctioned oil, Deputy Assistant Secretary of State David Peyman said Monday,

      "We are encouraging ship captains to take pictures of the ships exchanging oil," Peyman said at a conference in Washington.

    • 16:47

      Oil Prices Stabilise Amid Hopes of Demand at Lower Level - Energy Trader

      NEW YORK (Sputnik) - Oil prices stabilised after falling more than 30 percent on Monday as traders spoke of the likelihood of some demand at the lower levels, John Kilduff, partner at energy hedge fund Again Capital, revealed.

      West Texas Intermediate, or WTI, the benchmark for U.S. crude prices, was down $6.94, or 17%, at $34.34 per barrel by 11:15 a.m. EST (15:15 GMT). WTI earlier touched a four-year low of $27.34, plunging 34 percent.

      Brent, the London-traded global benchmark for crude, was down $8.36, or about 16%, to $36.91. Brent slumped to $31.27 earlier.

      "We could still go lower obviously, but we are trying to find equilibrium at these lower levels," Kilduff said. "Some are already considering prices at these levels as incredibly stimulative to the world economy. It gives countries like India a huge break and cost advantage."

    • 16:47

      European Stocks Fall by 7- 8% as Trading Closes

      Major European stock indices lost 7-8% on Monday, according to trading data.

      The British FTSE 100 index fell by 7.69% at 5965.77 points, the French CAC 40 was down 8.39% at 4707.91 points, and the German DAX was down by 7.94% at 10631.63 points.

      Italy's FTSE MIB was the worst hit, falling by 11.17% to end at 18475.91.

    • 15:57

      Current Oil Market Conditions Require Reducing Output, Talks on Issue Will be Held at Later Date – Iranian Ministry of Petroleum

      "We are convinced that the lack of consensus among OPEC countries and non-member states is an unexpected event that has negative implications for the cooperation of both parties," said a representative of the ministry Kasra Nouri.

      Iran believes that in order to maintain balance in the oil market, supply needs to be reduced which in turn means that negotiations to achieve mutual understanding on this issue will sooner or later be necessary, Nuri added.

      "Iran, being one of the most efficient OPEC countries, will not neglect any efforts to save the oil market," he concluded.

    • 15:39

      Russia Took Into Account Possible Collapse of Oil Output Deal, Current Market Situation is In Line With Forecasts - Energy Minister

      "The Russian oil industry maintains a high-quality resource portfolio and sufficient financial strength to remain competitive at any predicted price level, as well as maintain its market share," the energy minister Alexander Novak said.

      He added that Russia proposed the prolongation of the OPEC+ deal to the second quarter, however OPEC members opted to increase output and fight for market share.

      Novak, who spoke with Prime Minister Mikhail Mishustin at a cabinet meeting, said the Russian oil industry had enough liquidity to outlast any drop in prices and preserve its market share.

      "The government will pay special attention to stable deliveries of oil products to the national market and preserving the industry’s potential for investment," the statement added.

    • 15:20

      Buenos Aires Stock Exchange Opens With a 9% Decline

    • 15:15

      White House Advisers to Present Trump With List of Measures to Boost Economy Amid Coronavirus Fears Later on Monday - Reports

      President Trump is expected to meet with Treasury Secretary Steven Mnuchin and other advisers to contemplate an action plan in the face of the coronavirus outbreak, a source in the administration told Reuters.

       

    • 14:56

      Stocks Down Amid Crude Prices Slump and Coronavirus Concerns

      A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020. REUTERS/Bryan R Smith

      Stocks Plunge Over Double-Threat of Crashing Crude Prices and Coronavirus-Driven Recession Fears

      Earlier on Monday oil futures tanked after the OPEC + talks to agree on a collective production cut failed, effectively abolishing oil output restrictions, followed by Saudi Arabia’s decision to pump more oil.
      Read more
    • 14:34

      President Trump Blames Riyadh, Moscow and "the Fake News" For Market Slump

    • 14:33

      Von der Leyen Acknowledges 'Vast Impact' of Coronavirus on EU Economy

      BRUSSELS (Sputnik) - The European Commission strives to comprehensively address the strong impact of coronavirus on the European Union's economy, Commission President Ursula von der Leyen said on Monday.

      "The spread of the virus has a vast impact on people's lives, but it also has a vast impact on our economy. We are looking into everything that we can do to help to address the impacts on the economy," von der Leyen said at a press conference.

      She said a "strong coordination" was ongoing between the commission and Europe's leaders, as well as European institutions, to address this topic in a "coordinated and coherent way."

      Commissioner for International Partnerships Jutta Urpilainen, in turn, said during a joint press conference with EU High Representative for Foreign Affairs and Security Policy Josep Borrell that the Union would "try to support [its] partners in Africa in order to strengthen their health care system and health security," when asked about the coronavirus spread in Africa. She said that of the 300 million euros ($342 million) that the commission had issued in extra financial support two weeks ago, "part ... is going to Africa."

      A week ago, the Organisation for Economic Co-operation and Development (OECD) predicted a slowdown of the global GDP growth to as little as 1.5 percent in 2020 if the spread of novel coronavirus intensifies. Even if the spread worldwide is contained, the OECD forecast the global GDP to not grow beyond 2.4 percent, which is 0.5 percentage points lower than previous estimates.

    • 13:48

      Sao Paulo Exchange Drops by Over 10 Percent at Opening, Trading Halted

      The Sao Paulo B3 stock exchange has halted trading after the main Ibovespa index lost 10.02% at the opening of the session, falling to 88,178 points. Brazil's Petrobras oil company was the biggest loser with its shares down by 24.8%.

    • 13:37

      Wall Street's Dow Index Falls More Than 7% Reacting to Markets Tumble After Oil Price Collapse

      NEW YORK (Sputnik) - US stocks tumbled more than 7 percent on Monday, with the key Dow index falling more than 1,800 points, reacting to the tumble in global markets after oil prices collapsed in the aftermath of an expected Saudi-Russian price war.

      The Dow Jones Industrial Average, the broadest equities gauge on the New York Stock Exchange, was down 1,884 points, or 7.3 percent, to 23,790.90 by 9:38 AM ET (12:38 GMT).

      The steep plunge triggered a halt to trading for 15 minutes.

    • 13:23

      IEA Expects Oil Demand to Return to Close to Normal in 2nd Half of 2020 – Report

      MOSCOW, March 9 (Sputnik) - The global demand for crude oil can be expected to recover after a sharp drop amid price fluctuations in the second half of 2020, the International Energy Agency said in a report on Monday.

      "For the first time since 2009, demand is expected to fall year-on-year, by 90,000 barrels per day," the report read, citing the spread of coronavirus beyond China. "We assume that oil demand returns to close to normal in 2H20."

      Depending on how the virus spread proceeds worldwide, the watchdog has outlined its expectations under two possible scenarios.

      "Our pessimistic low case assumes that countries already affected by the virus recover more slowly while the epidemic spreads further in Europe, Asia, and beyond," it said in the report, adding that "In this pessimistic case, global oil demand could decline by 730,000 barrels per day in 2020."

      Conversely, if the epidemic's impact is successfully mitigated, the IAE expects global oil demand to grow by 480,000 barrels per day.

      The overall forecast for the year is for oil demand to be 99.90 million barrels per day, with the annual forecast, thus, lowered by close to a million barrels per day.

      As for Russia, the IAE maintained its forecast for hydrocarbon gas liquids production in 2020 at 11.59 million barrels per day, despite the Saudi-led OPEC's failure to agree on deeper production cuts.

      The growth rate, therefore, will amount to 0.01 million barrels per day, according to the report.

    • 13:16

      Egypt's EGX 30 Index Suffers 7.35 Percent Drop

      Egypt's EGX 30 is staying at about 10,978 points, while EGX 100 is at about 1,167 points with a 5.70 percent slump.

    • 12:52

      European Stock Exchanges Plummet Amid Oil Prices Decrease

      MOSCOW (Sputnik) - Major European stock exchange indexes are plummeting on Monday due to the significant decrease in oil prices.

      Earlier in the day, oil prices plunged by 30 percent following the collapse of the OPEC+ negotiations held last Friday due to Moscow's reluctance to cut its oil production, resulting in Saudi Arabia slashing its prices in return.

      As of 12:36 GMT, France's CAC 40 has decreased by 7.58 percent, staying at 4,747 points while the UK's FTSE 100 and Germany's DAX register 7.06 percent and 7.61 percent decrease respectively, with at 6,007 points and 10,662 points.

      At the same time, Italian FTSE MIB has plummeted by 10.18, with 18,722 points.

       

    • 12:48

      Algeria in Talks With Partners on Stabilising Oil Markets, Considers Efforts to Conclude OPEC+ Deal Necessary

      CAIRO (Sputnik) - Algeria has been negotiating oil prices stabilisation with its partners since Friday and considers it necessary to adopt urgent measures to deal with the current situation on the market, Energy Minister Mohamed Arkab said on Monday.

      Last Friday, OPEC+ negotiations on cutting oil production to prevent oil prices from going down ended up going nowhere as Moscow expressed its reluctance to decrease its production.

      "On Friday we have agreed to continue consultations and work on this agreement in order to make all countries give a positive signal to oil markets. Since Friday we have been engaged in constant consultations, we will continue tomorrow as well, and so on ... We consider it necessary [to have] a precise analysis of the market situation and consultations with all sides that signed the agreement. We hope that there will be a direct and swift intervention from the OPEC member states and from the outside of the organisation to restore the market balance," Arkab told en-Nahar TV channel.

      Arkab said that a similar situation had taken place in 2014, when oil was sold for $20 per barrel, кусфддштп that back then the situation had been solved by adopting the 2016 agreement in Algeria.

    • 12:26

      Boosting Oil Output Will Harm Everyone Including Oil Producers - Iraqi Oil Ministry

      BAGHDAD (Sputnik) - Iraq is holding talks with interested countries on a new oil deal to stop falling prices and stabilise the market in the wake of oil producers’ failure to agree on deeper production cuts, Oil Ministry spokesman Asim Jihad said on Monday.

      "Iraq is currently negotiating with interested parties to reach a new agreement that will stabilize the oil market and put an end to the drop in oil prices. The previous agreement to limit [oil] production is to end in late March, we intend to use this time to urge OPEC member countries and non-member [states] to reach an agreement that will return balance to the global oil market," Jihad said.

      According to the spokesman, it is currently unreasonable to supply additional volumes of oil to the world market, as this will lead to a further drop in prices, which will "cause significant harm, especially to producing countries."

    • 12:21

      New York Fed to Increase Cash Injections Into Financial Markets By Up to $150 Bln Daily

      The boost "should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus," the New York Fed said in a statement.

    • 11:23

      Saudi Aramco's Stock Prices Fell by Maximum Allowed 10% at Opening of Trading

      MOSCOW (Sputnik) - The Saudi Aramco's stock prices fell by the maximum allowable 10 percent to 27 riyals ($7) at the opening of trading on Monday.

      On Sunday, its shares traded below the original IPO price of 32 riyals for the first time since December, which was a 6.36 percent drop.

      The stock prices are falling amid the collapse in world oil prices by more than 30 percent. Oil quotes tumbled after the Saudi-led OPEC, or the Organization of the Petroleum Exporting Countries, failed to agree on the oil production cuts.

      The OPEC has had production cutting pacts since 2016 with non-member allies led by Russia. The wider alliance, known as OPEC+, met in Vienna on Friday to discuss a potential cut of another 1.5 million barrels per day (bpd) above an existing pact to reduce as much as 2.2 million bpd from the start of 2020.

      OPEC+ issued a statement after Friday’s talks, saying it would continue consultations to stabilize the oil market, without mentioning the deeper cuts.

    • 10:53

      Global Oil Demand to Grow by 5.7Mln Barrels Per Day in 2019-25 - Int'l Energy Agency

      MOSCOW (Sputnik) - The global oil demand is expected so see an increase of 5.7 million barrels per day (mb/d) between 2019 and 2025, according to a forecast by the International Energy Agency (IEA).

      "Between 2019 and 2025, global oil demand is expected to grow at an average annual rate of just below 1 million barrels a day. Over the period as whole, demand rises by a total of 5.7 million barrels a day, with China and India accounting for about half of the growth," the IEA said in a press release.

      "At the same time, the world’s oil production capacity is expected to rise by 5.9 million barrels a day, with more than three-quarters of it coming from non-OPEC producers, the report forecasts," it added.

      The IEA also said that the overall non-OPEC oil supply will rise by 4.5 mb/d reaching 69.5 mb/d by 2025, adding that despite the COVID-19 outbreak, the growth will resume the next year.

      "Following a difficult start in 2020 (-90 kb/d [thousand barrels per day]) due to the coronavirus, growth rebounds to 2.1 mb/d in 2021 and decelerates to 800 kb/d by 2025 as transport fuels demand growth stagnates," the agency stated.

    • 10:41

      Goldman Sachs Predicts Oil Price Collapse to $20 a Barrel

      Oil barrels

      Oil in Turmoil: Prices Could Collapse to as Little as $20 a Barrel, Goldman Sachs Warns

      Oil futures crashed over 30 percent in Monday trading, with the drop being the second-largest in history, second only to the 1991 price plunge taking place during the Gulf War, with leading global price benchmark Brent crude dipping to as little as $32 a barrel.
      Read more
    • 10:40

      Impact of Oil Price Fall on Russia's Budget and Global Shale Industry Revealed

      General views of the INEOS plant in Grangemouth as the first shipment of shale gas from the United States arrived in Britain. (File)

      Fitch Ratings Reveals Impact of Oil Price Slump on Russia's Budget, Global Shale Industry

      MOSCOW (Sputnik) - At 04:41 GMT, the price of May futures for the Brent Crude oil dropped by 28.69 percent — to $32.28 per barrel. The value of April futures for WTI crude oil decreased by 31.35 percent to $28.33 per barrel.
      Read more
    • 10:37

      Oil Prices Slump by 30% Following OPEC+ Deal Failure

      Oil pump jack

      Oil Prices Fall by 30% Amid OPEC+ Deal Failure - Market Data

      MOSCOW (Sputnik) - Oil prices fell by more than 30 percent on Monday, in the wake of OPEC oil producers’ failure to agree on deeper production cuts.
      Read more
    live
    Live Updates: Stock Exchanges in North and Latin America Sink at Opening Amid Major Indices Tumble
    +
    Topic:
    Oil Prices Slump, Coronovirus Fears Send Global Economy Into Turmoil (36)
    Tags:
    prices, market, oil
    Community standardsDiscussion
    Comment via SputnikComment via Facebook