The panic in the markets led to the largest since 1991, the fall in oil prices
for several weeks, the epidemic coronavirus global markets. Experts not able to assess the impact of the epidemic on the global economy, so every new factor causes a sharp jump of quotations.
However, the weekend's events have led to panic sales, which was last seen during the financial crisis of 2008 In the negotiations of Ministers of the OPEC countries+ Saudi Arabia and Russia have agreed to extend restrictions on oil production in response to coronaviruses caused by a drop in demand.
After Russia's refusal from production cuts, Saudi Arabia declared its intention to significantly increase oil production and offered customers a reduction of 7-8 $/t
It led to the fall in oil prices by 30% and the collapse of the stock and stock indexes in global financial markets. At yesterday's auction the price of oil WTI fell by 34% to $ 27.34 $/barrel and Brent up to 31,29 $/barrel, although in the end of the session quotations recovered to 33,26 $/barrel and 36.9 $/bbl, respectively.
the commodity markets that determine the value of the world's largest companies, collapsed yesterday also:
the
S&P 500 7,60% to 2746,56 n
the Nasdaq - 7.92% to 7950,68 n
Britain's FTSE 100 - by 7.69%,
France's CAC 40 by 8.39%,
Germany's DAX - by 7.94%,
Italy's FTSE MIB by 11.17%.
- in the USA the Dow Jones fell by 7.78% to 23851,33 n
Following the oil prices, the share price of Russian companies on the London stock exchange fell by 15-25%, and the ruble exchange rate on Forex has fallen from 65 to 75 rubles/$.
Monday in Russia it was a holiday and markets are not working, so the fall will see today, when investors begin to withdraw funds from the Russian assets under threat of further decline in oil prices and the economy.
the Collapse of oil prices in the 90-ies have led to the collapse of the Soviet Union. And in the case of reduction of prices on oil to level 30-35 $/barrel for at least a year, the economy of Russia also has substantial losses.
