As of March 10, 2020, oil prices show slight growth after the weekend collapse.
Today, exchanges in Hong Kong and China opened with a slight increase.
The main index of the Hong Kong Stock Exchange at the opening of trading on Tuesday rose by almost 1% amid the collapse of global markets and at the same time an increase in the cost of Brent and WTI crude oil. It is reported by RBC-Ukraine.
The Hang Seng Index rose by 0.98% to 25,285.68 points.
The main indices of Chinese mainland stock exchanges at the opening of trading showed a slight increase.
The index of the Shanghai Stock Exchange SSE Composite increased by 0.61% to 2961.26 points, the index of the Shenzhen Stock Exchange SZSE Component grew by 0.87% and amounted to 11205.02 points.
Shares of Russian oil companies fell more than 10% at the opening of trading on the Moscow Exchange.
As of 10:14 Moscow time, Rosneft shares fell 12%, Gazprom – 12.8%, LUKOIL – 14%.
As of 10.30 Moscow time, Brent crude is trading at around $35.95 per barrel. The growth is 4.6% compared to the close of trading.
To recap, after reports that OPEC was unable to agree with OPEC + countries to reduce oil production, prices on exchanges fell by more than 30%.
On Monday, March 9, Brent crude oil prices fell to $31.43 per barrel.
Citing a source, Bloomberg reported that the Russian company Rosneft plans to increase oil production as soon as the current OPEC + deal is completed.
Last week, OPEC and OPEC + met to discuss a reduction in oil production due to an outbreak of coronavirus.
Russia and Saudi Arabia were unable to agree on a reduction in oil, so Saudi Arabia said it would increase the production of raw materials and lower its prices, despite the fact that the demand for oil in the world market is falling.
US President Donald Trump reacted to the situation, and accused Russia and Saudi Arabia of a collapse in prices.
“Saudi Arabia and Russia are arguing over the price and flow of oil. This, as well as fake news, is the reason for the market drop”, Trump wrote on Twitter.
The International Energy Agency (IEA) predicts a decline in world oil demand in 2020 – by 90 thousand bpd, the agency says in a report.
“The coronavirus has spread outside of China, and our forecast for global oil demand in 2020 fell by 1.1 million bpd. It is expected that for the first time since 2009, demand will decline by 90 thousand bpd year-on-year to 99.9 million bpd. In the first quarter of 2020, oil demand in China fell by 1.8 million bpd year-on-year, and global demand fell by 2.5 million bpd. We assume that oil demand will return to normal in the second half of 2020”, the IEA report said.
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