FX.co ★ Oil prices hit record low

Oil prices hit record low

Every oil producer suffers from low oil prices. A collapse in oil prices has a very fast and devastating effect on Russia's economy. The fact is that oil has been falling for several sessions already.  Some time ago, the Russian experts forecast a rise to $200 a barrel. Besides, Russia also planned to become completely independent from the US dollar. In fact, Brent crude showed the deepest fall to $55 a barrel. The price of the Russian oil has always been lower than the price of Brent crude because of its worse quality. Economists suppose that the outbreak and the rapid spread of the coronavirus is the key reason for the oil slump. Energy demand has already tumbled amid the epidemic. Moreover, it is getting more and more sluggish. Besides, the market activity is shaped by the expectations of lower demand on energy resources. OPEC is planning to call an emergency meeting in February to discuss the virus impact on the global oil market as well as further cuts in oil production in order to support prices.


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