Oil price war between producers and its economic side effects on oil market
March 11, 2020
Corona virus has disturbed oil global supply chain all over the world in recent months.
Decreasing oil demand encouraged Saudi Arabia and OPEC members to discuss about decreasing the oil production by 1.5 million barrels a day. But Russia rejected this idea. Consequently Saudi crown prince “Mohammad Bin Salman” decided to increase the oil production from 9 million to 11 million barrels a day. As mentioned by Mohammad Bin Salman the decision will cause huge decrease in prices soon.
The fact is an oil price war between Saudi Arabia and Russia. Regarding to these decisions the oil stocks has fell more than 30 percent over a night which costs more than $140 billion for Australia’s share market.
