Arabia announces 20% cut in oil barrels

English Mar 9, 2020

Saudi Arabia has announced 20% oil price discounts for April, dropping on Sunday the stock exchanges of the countries of the Persian Gulf and the value of the shares of the state-owned Aramco, the largest oil producer in the world.

According to the Financial Times, Arabia also plans to increase production to over 10 million barrels a day. The measure came after Russia rejected at the OPEC + meeting a reduction of 1.5 million barrels in daily world production. Saudi Arabia produces about 9.5 million barrels a day, although its capacity is 12.5 million. The USA produces 13 million barrels a day.

The price of oil has already fallen by 30% this year, with reduced demand from China and other Asian countries hit by the coronavirus outbreak. This fall will certainly widen, stressing markets around the world.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.