Oil prices fell by more than 30 percent on Monday, in the wake of the OPEC oil producers’ failure to agree on deeper production cuts amid the outbreak of the coronavirus, officially known as COVID-19.
After the talks failed, Saudi Arabia slashed the official selling price for its crude.
OPEC has had production cutting pacts since 2016 with its non-member allies, led by Russia. The wider alliance, known as OPEC+, met in Vienna on 7 March to discuss a potential cut of another 1.5 million barrels per day (bpd) above an existing pact to reduce production by as much as 2.2 million bpd from the start of 2020.
The oil giant, which recently changed leadership, is pinning its hopes on the rapid expansion of non-fossil fuel energy, specifically green energy, which has been receiving the support of many Western governments and could draw the attention India and China due to ecological issues.
In August the Bank of England predicted the nation's economy would grow by 9 percent in 2021, forecasting it would bounce back to its pre-pandemic levels by late 2021, under the conditions that there was no second wave of the coronavirus and that a smooth transition to post-Brexit economic arrangements with the EU was negotiated.
The UK government had extended its emergency response to the coronavirus crisis to support for the country’s self-employed, pledging grants to cover as much as 80 percent of their earnings, but measures are now being considered that would tap them to relieve the pandemic-eroded budget.
The coronavirus pandemic has generated an unprecedented global economic crisis, battering all aspects of life, including the energy sector, with the outbreak dampening demand for oil, bringing down prices and resulting in declining production. The unprecedented volatility of the last few months has put price forecasting in the spotlight.
LONDON (Sputnik) - Thousands of UK citizens who are currently in France and the Netherlands are rushing to get back to their homeland before a mandatory 14-day quarantine order for returnees enters into force at 04:00 local time [03:00 GMT] on Saturday.
Previously, similar tactics by Saudi Arabia implemented in 2017 proved instrumental in draining a global crude glut and propping up the market, as the kingdom slashed its US oil exports to nearly a three-decade low.
Oil demand has slumped amid the COVID-19 pandemic, which has grounded passenger planes and halted economic activity across the globe. On 20 April, the price of West Texas Intermediate crude for May delivery fell to a negative value for the first time in history due to limitations in storage space.
In late May China’s government announced it would not be setting an annual growth target for the first time since 2002, highlighting the uncertain outlook for the economy amid the fallout from the COVID-19 pandemic.
Amid a slump in demand for oil and dwindling storage capacity due to the COVID-19 pandemic, it was earlier reported that tankers carrying Saudi Arabian oil launched by the kingdom before it called a halt to the price war and agreed new production cuts were on course for the US coast, to join the congestion of tankers there waiting to offload.
In April, the Interior Department’s Bureau of Land Management was cited by The Hill as confirming royalty-rate cuts to oil and gas companies were possible if they could show that otherwise they were not able to successfully operate public energy leases economically or maintain enough staff at drilling sites.
In April, Venezuela, which has been struggling under a COVID-19 quarantine while crippled by US sanctions, demanded that the Bank of England sell part of the gold reserves it has kept there to help fund the country’s efforts to fight the pandemic.
Amid the COVID-19 pandemic and the toll it has taken on global economies, EU leaders have been in an acrimonious debate for weeks over how best to support struggling member-states, with France, Italy and Spain more inclined to resort to grants, while Germany and the Netherlands preferred economic recovery to be stimulated by loans.
Beijing's recent decisions come against the backdrop of heightened diplomatic tension between China and Australia, following a push by Prime Minister Scott Morrison for an independent COVID-19 investigation amid allegations the Asian country had downplayed the seriousness of the virus.
According to Ola Grytten, a professor of economic history at the Norwegian School of Economics, the last time a similar GDP drop occurred was in 1931, during the Great Depression.
MOSCOW (Sputnik) - Saudi Arabia's state oil giant Aramco has raised most June pricing to Asia, the Bloomberg news agency reported Thursday, citing the official price list.
Traders, refiners and infrastructure companies have been scrambling to find fuel storage alternatives to onshore tanks amid an oil glut after COVID-19 lockdowns crippled demand and crude prices nosedived to all-time lows.
Petrostates across the globe have been forced to reconcile themselves with a future when one of their most prized commodities - oil - has dramatically shed its worth amid economies battered by the COVID-19 pandemic.
Criminals on the dark web are taking advantage of promising research on blood plasma therapy as a COVID-19 novel coronavirus treatment and have begun peddling blood belonging to supposed virus survivors as a “passive vaccination.”
The economic impact of the coronavirus outbreak is beginning to be felt with British Airways announcing they are laying off 12,000 employees and the German economy forecast to shrink by 6.6 percent over the next year.
On Tuesday, US President Donald Trump invoked the Defense Production Act, signing a presidential order decreeing that meat packing plants must stay open to buttress the nation’s food supply amid widespread disruptions from the COVID-19 pandemic.