Oil prices collapsed to their lowest level in 18 years
Economy News _ Baghdad
Crude oil prices have fallen to their lowest level in nearly 18 years, as growing concerns about an impending economic recession due to the Corona virus outbreak have raised concerns about global energy demand.
And Brent prices closed Saturday, a new low of $ 1.09, or 3.83%, to $ 27.38, while US crude fell to $ 23.66, a decrease of $ 2.25.
Compounding the problems of the crude oil market, the price war between Russia and Saudi Arabia started after the dispute over production cuts at the recently concluded OPEC + meeting without an agreement.
Analysts expect Goldman Sachs group to continue to drop oil prices in the coming months, so some expect that some regional prices may be negative in light of the market's attempts to send signals to stop supplies.
Analysts in "City Group" believe that the main issue is the possibility of the average price of a barrel of Brent crude reaching 17 dollars or less in the second quarter, with the possibility of average prices reaching 5 dollars and the possibility of prices falling to the negative area in some areas due to the lack of storage and logistics services.
The sudden and dramatic fall in oil prices has boosted large-scale market sales, and threatens economies in Latin America, the Middle East and the United States where the energy industry represents large portions of both GDP and debt.