The oil dispute
Posted: Wed Jan 22, 2025 10:46 am
To make the economic scenario even more tense, in parallel with the coronavirus, there is a geopolitical issue between two oil powers: Saudi Arabia and Russia. The dispute over oil prices ended up causing a 30% drop in the price of a barrel, a situation that has not happened since 1990.
We need to go back a few months, to the OPEC (Organization of the Petroleum Exporting Countries) meeting that took place in early March. The two countries reached a stalemate, as Saudi Arabia, which is the cambodia phone number list of the organization, suggested a reduction in production to balance demand and supply due to the consequences of the coronavirus. However, Russia did not want to back down in production levels.
In response, Saudi Arabia decided to cut the sale price of its barrels, causing an imbalance in the average world oil price and ending friendly trade relations with Russia.
It is good to know that the countries have been partners in fuel trade since 2016, and that, thanks to this partnership, it has been possible to make the prices of this commodity more balanced. The consequences for the market, in general, were the fall in barrel prices and the decline in the shares of oil producing companies around the world.
Throughout this text, we will show you what a circuit breaker is and how this strategy is used by the stock market to try to contain moments of great instability in the volume of transactions. In recent months, Brazil has gone through a series of circuits that have reflected how the economy is not at its best.
It is important to emphasize that this situation is not happening by chance; the impasse in oil prices and the spread of the coronavirus are responsible for these moments of decline in the market. This also indicates that it will still take some time for us to return to previous levels, and we will have to wait for the global decrease in coronavirus cases.
We need to go back a few months, to the OPEC (Organization of the Petroleum Exporting Countries) meeting that took place in early March. The two countries reached a stalemate, as Saudi Arabia, which is the cambodia phone number list of the organization, suggested a reduction in production to balance demand and supply due to the consequences of the coronavirus. However, Russia did not want to back down in production levels.
In response, Saudi Arabia decided to cut the sale price of its barrels, causing an imbalance in the average world oil price and ending friendly trade relations with Russia.
It is good to know that the countries have been partners in fuel trade since 2016, and that, thanks to this partnership, it has been possible to make the prices of this commodity more balanced. The consequences for the market, in general, were the fall in barrel prices and the decline in the shares of oil producing companies around the world.
Throughout this text, we will show you what a circuit breaker is and how this strategy is used by the stock market to try to contain moments of great instability in the volume of transactions. In recent months, Brazil has gone through a series of circuits that have reflected how the economy is not at its best.
It is important to emphasize that this situation is not happening by chance; the impasse in oil prices and the spread of the coronavirus are responsible for these moments of decline in the market. This also indicates that it will still take some time for us to return to previous levels, and we will have to wait for the global decrease in coronavirus cases.