Crude Oil Retreats After Sharp Rally on uncertainty Over Price-War agreement

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Crude Oil gave up a few last week’s rallies once the confirmation of a planned meeting between Saudi Arabia and Russia received. Both are among world’s largest crude oil producers. They are planning to discuss reducing the production of crude Oil. Further, we will try to conclude to stop the price war on crude. Undoubtedly, the price of war is lethal to both economies.

The meeting between these two countries aims to cut crude oil production by million barrels in a day. That is one-tenth of the global output. Due to the widespread coronavirus in every state of the world, the global economy is crippling. Reduction in the production of crude Oil will not be supported by falling crude oil prices.

On Friday, The International Energy Agency (IEA) said even the deepest cuts in production would not be enough to steady prices of crude Oil globally.

Top points:

  1. On Sunday, some progress reported between Saudi Arabia and Russia towards the agreement.
  2. Lack of interest from the United States (the largest crude oil producer in the world) could prove as a hurdle.
  3. In Singapore, on the intercontinental exchange, Future Europe exchange at 8:00 am Brent crude oil prices fell for 6.4% that brought the price of a barrel to 31.93 dollars.
  4. West Texas Intermediate prices declined around 8.3%, reducing the cost to 25.99 dollars a barrel in New York Exchange.

West Texas Intermediate and Brent crude Oil are two benchmark prices for the trading of oil prices worldwide.

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