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.
Previously, the spreading COVID-19 pandemic and measures taken by countries in a bid to contain it were called out by the head of International Monetary Fund Kristalina Georgieva as capable of wreaking havoc on the global economy equal to the 2008 global financial crisis, resulting in a recession, with recovery anticipated sometime in 2021.
This comes as OPEC+ countries are scheduled to discuss on Thursday the creation of a new agreement to reduce oil production with the possible participation of other major oil-producing states.
MOSCOW (Sputnik) - OPEC+ countries will discuss on Thursday the creation of a new agreement to reduce oil production with the possible participation of other major oil producing states to stabilize the situation on the market, which came under pressure from the novel coronavirus (COVID-19) pandemic.
OPEC+ members, as well as third-party countries, will be dialing in on 9 April to determine a new course of action to change the situation on the bearish energy market caused by oversupply and the global coronavirus outbreak.
The Scandinavian nation is expected to lose roughly 1 billion kroner kroner ($97 million) each day.
The coronavirus pandemic has turned the Big Apple into a ghost town. Observing desolate streets and boarded up stores urban dwellers have raised the question as to how New Yorkers will behave if they are pushed over the edge.
Since issuing a threat to impose steel and aluminium tariffs on Brazil last year, Donald Trump has not ruled out travel restrictions against the country which has found itself in the midst of the coronavirus crisis. Brazilian academic Ricardo Balistiero has explained why Trump is giving no quarter to Brazil despite Jair Bolsonaro's loyalty.
Earlier, media in Canada, France and Germany reported that the US was withholding medical supplies intended for other countries, as the White House has denied the allegations.
US President Donald Trump rejected the findings of an inspector general’s report on Monday, suggesting the report was politically biased, and he called the reporters who asked him about it “fake news.”
New Delhi (Sputnik): Facing economic headwinds in the wake of the COVID-19 pandemic, private-sector airlines in India have announced salary cuts. Indian air carrier Spicejet recently cut salaries some 10-30 percent. In March, Indigo announced a salary cut, while GoAir dismissed staff for “leave without pay”.
New Delhi (Sputnik): India's political parties are increasing their physical presence, with hundreds of party workers engaged in the distribution of COVID-19 relief materials to the poor. But will this worker mobilisation yield political and electoral benefits?
New Delhi (Sputnik): India facing the looming danger of community transmission, with coronavirus cases exploding over the 4000 mark and more than 100 deaths. The new reality is not lost on the country’s prime minister, Narendra Modi, who imposed a 21-day lockdown when there were 500 positive cases in a country with a billion-plus population.
US President Donald Trump announced on Monday that the hospital ship USNS Comfort, presently moored in New York Harbor, would be opened to patients with COVID-19. The ship was originally sent to the area to treat other cases.
Aircraft maker Boeing announced temporary closures at its final remaining open plant on Monday, saying its South Carolina factory would be shuttered until further notice.
Global crude prices have fallen to levels not seen since 2002 against the backdrop of the coronavirus-induced pause to national economies and the collapse of the OPEC+ deal.
British Prime Minister Boris Johnson, recently hospitalized due to symptoms of COVID-19, has been moved to an intensive care unit (ICU).
The acting Navy Department chief blasted the recently fired captain of the USS Theodore Roosevelt to the ship’s crew on Sunday, saying Captain Brett Crozier had been either “too naive or too stupid” to be in command. Crozier was fired last week for penning a letter begging for help fighting a COVID-19 outbreak on the warship.
Global oil prices suffered a sharp decline as a result of the collapse of the OPEC+ deal after its members failed to negotiate the extension of production cuts. US President Donald Trump claimed that the deal was not prolonged due to Russia and Saudi Arabia entering into a price war.
The COVID-19 outbreak has put economies around the world on hold, resulting in millions of layoffs and potentially in recessions on a scale surpassing the 2008 financial crisis in certain countries.
Following the OPEC+ deal falling apart Saudi Arabia ramped up its oil production and started offering its crude to European buyers at a significant discount. This pushed the price of black gold down further after already suffering a decline due to coronavirus pandemic-induced quarantines.