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Topic: Oil Prices
The producer alliance is responding to the demand destruction wrought by the virus, and the cutbacks are on their way to their goal of removing around 10% of global supplies.
Russia’s public health system won't be able to handle the number of Covid-19 cases the country is likely to suffer. China has reported its first economic contraction in 28 years.
Sensex tracked heavy losses in banking, energy and IT stocks amid volatility in global market as international crude oil prices went into a tailspin overnight.
Don’t be surprised if the war over market share between Saudis, Russians and Americans resumes once the lockdowns ease and people want oil again.
With oil prices in the range of $50 to $55 a barrel, Saudi Arabia’s international reserves would fall to about five months of import coverage as soon as 2024.
Futures in New York fell as much as 2.8% in the Asian morning, touching as low as $26.20 a barrel, which would be the lowest close since May 2003.
This is the second time in six years that Saudi Arabia has embarked on a pump-at-will oil production policy that has hammered prices.
Travel bans, work-from-home, cancelled vacations and disrupted supply chains all mean reduced demand for fuel.
The petrol & diesel prices are likely to remain unaffected since the hike comes in the backdrop of a steep fall in international crude oil prices.
Today’s political, economic & strategic punditry from Kaushik Basu, Sajjid Z. Chinoy, Somasekhar Sundaresan and Arvind Panagariya.