In view of Corona’s growing transition, the demand for oil fell drastically due to the worldwide lockdown and travel restrictions, which impacted its prices. Meanwhile, the price war between Saudi Arabia and Russia deepened the crisis.
On Friday, oil prices saw a spurt after the Corona virus epidemic plagued US President Donald Trump’s plan to reopen the US. Due to efforts being made by most of the countries of the world to prevent corona, the prices of oil had fallen drastically.
Brent crude, the international benchmark, rose nearly three percent to $ 28.65 a barrel in Asian trade, while the US benchmark WTI rose 0.6 percent to $ 19.99 a barrel, but it still remains at its lowest level since 2002. The oil markets saw overnight growth on Asian stock markets and Wall Street.
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Lockdown increased trouble
In view of the increasing outbreak of Corona, due to the lockdown and travel restrictions imposed worldwide. There was a huge drop in the demand for oil which affect its prices. Meanwhile, the price war between Saudi Arabia and Russia deepened the crisis.
Riyadh is the main center of OPEC, a group of oil exporting countries. While Moscow is the main center for non-OPEC members. The two end their feud last weekend when it was decide to cut production by about 10 million barrels a day to boost sluggish markets.
But the prices continued to fall further. Analysts say that this will not be enough to overcome the demand deficit due to Corona.