Speculators played the last falling of the prices for oil have supported commodity markets

2020-03-20 12:02:36
Machine translation
Speculators played the last falling of the prices for oil have supported commodity markets

due to the rapid spread of the virus Covid-19 world panic brings profit to the speculators who play on the rise and the drop in prices of stocks and oil, using the inability to predict further development of the situation.


Within two weeks the major stock market indices in the US fell to 5-12% and up to 5-7%.


on Wednesday, oil prices have fallen by 20-25%, and yesterday resumed on the same 20-25%. Prices for Brent oil yesterday rose by 17% up to 28,75 $/barrel, and us crude fell by 25% to 25.8 $/barrel. The recovery in oil prices supported the markets of agricultural products.


Despite the speculative growth of quotations of the price of Russian Urals crude for delivery in North-Western Europe at auction on 18 March was down 22% to the lowest since February 2002 level of 18.64 $/barrel on news of the suspension of procurement by the European traders of Russian oil in the background of the Saudi Arabia oil supply for 25 $/barrel and below.


Also, the price of Russian oil pressure increase during 1-5 March shipments from Baltic ports by 25% to 2 million barrels/day.


Usually Russian Urals crude oil sold for less than Brent, because it contains large amounts of impurities.


the Experts do not expect a recovery in oil prices above the level of 35 $/bbl, since predicting the start of a new global economic crisis.


Economists at Morgan Stanley predict in 2020 the global economic recession and the growth of no more than 0.9%, and the growth of global GDP is not more than 1.25%. Agency S&P expects GDP growth in the range of 1-1,5%.


While analysts believe that the economic decline will not be as strong as in 2008, when global GDP fell by 0.8%, but more noticeable than during the crisis of 2001. and the beginning of the 1990s years.


Negative forecasts of analysts now need to make the financial authorities of most countries to take action to support manufacturers and small businesses.

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