The United Arab Emirates followed Saudi Arabia on Wednesday in promising to raise oil output to a record high in April, as the two OPEC producers raised the stakes in a standoff with Russian Federation that has hammered global crude prices.
The global benchmark was trading at USD34.07 for each barrel at 0550 GMT for a 4.8 percent drop, after it ended Wednesday at USD35.79 a barrel with a decrease of 3.7 percent.
Oil markets fell yesterday, as Brent oil futures went down by 3.84 percent and Western Texas Intermediate oil futures lost 4.02 percent.
Angola produced 1.39 million barrels of oil per day in February, up 15,000 against January, according to the monthly report from the Organization of Petroleum Exporting Countries (OPEC) released Wednesday.
Global equities plunged and the Dow Jones index was on course for its worst performance since Wall Street's "Black Monday" crash of 1987 after Trump announced the travel restrictions. Brent was trading at roughly $36 a barrel in London, and WTI trading at about $33/Bbl in NY.
The six-month Brent (NYSEARCA:BNO) contango spread from May to November widened to as low as $6.40/bbl, a level not seen since February 2015. "They are dumping the oil from storage".
First presumptive case of coronavirus reported on Vancouver Island
Another health care worker has also tested positive for the virus, a woman in her 40s who lives in the Fraser Health Region. Foreign Affairs Minister Francois-Philippe Champagne said Canada made the decision after the USA government asked for help.
Iran releases 70,000 prisoners as coronavirus outbreak worsens
Health Ministry spokesman Kianoush Jahanpour said on March 8 that there are over 6,500 confirmed coronavirus infections in Iran. On Sunday, an emergency was imposed in NY after the number of coronavirus cases in United States rose to 22.
Alisson ruled out of Liverpool's key games against Bournemouth and Atletico Madrid
It is a human being. "What I remember about him since the beginning is that he always wants to give solutions", said Azpilicueta. Hopefully not too drastic, so we'll see". "If you don't you decrease your own chances".
But the kingdom has increasingly voiced frustration about acting as the world's main "swing producer" propping up prices by much bigger cuts than others, while its reserves are among the world's biggest and its oil among the cheapest to extract.
OPEC plus is now operating on a reduction of 2.1 million barrels per day in oil production, and that lasts until April 1. Moscow said that there was no point in cutting output because it would likely be too little to compensate for the impact on global demand of the virus. But the bounce faded quickly across markets.
The Saudi and UAE moves follow the collapse of an oil output reduction agreement between Opec and non-Opec producers, led by Russian Federation.
"They're both getting ready to fight a pretty aggressive price war".
That from Consumers for Fair Gas Prices George Murphy who says after a major drop of just over 10 cents earlier this week, he is expecting the price for gasoline to fall by another penny at midnight tonight.
The bear case sees oil falling below US$30, against the backdrop of a continued price war between Saudi Arabia and Russian Federation and COVID-19 "wreaking havoc in oil-consuming regions" such as the United States, China and India. Estimates for the scope of the glut vary.
"We believe oil prices will not bottom until the fourth quarter of 2020 or first quarter of 2021, particularly in view of the weaker demand outlook caused by the COVID-19 outbreak", said energy analyst Paul Cheng at Bank of Nova Scotia in a conference call on Wednesday.