Saudi Arabia is expected to keep oil output high in May, with Aramco saying it is ‘very comfortable’ with $30 a barrel
Singapore/London — Oil prices fell below $30 a barrel on Tuesday, extending losses after shedding a 10th of their value on Monday, as the coronavirus pandemic hit demand, while Saudi Arabia raised output to a record as it battles with Russia for market share.
US President Donald Trump warned that the US may be heading into recession as economic activity across the globe slowed and stocks tumbled. The US has said it will take advantage of low oil prices to fill its strategic petroleum reserve , and other countries and companies are planning similar measures to fill storage tanks.
Amid heavy demand loss from the global spread of the coronavirus that causes Covid-19, Saudi Arabia and Russia started a price war after failing to agree to extend their pact to cut output to support the market. “Much focus is also falling on the Russians and Saudis, with no expectations for either side to blink unless oil collapses towards the $15 region ... If we see oil falls below the $20 level, the Saudis may decide to come back to the negotiating table, however maybe just with [oil cartel] Opec and not the Russians,” said Edward Moya of Oanda.
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