Oil prices fell sharply on Friday to the lowest level in more than three years due to the failure of a production deal between the oil cartel OPEC and Russia. The oil market is also under pressure from concerns about the negative impact of the new corona virus on the economy.
The price of American oil plummeted more than 10 percent to $ 41.16 per barrel and Brent oil fell more than 9 percent to $ 45.32 per barrel. These are the largest price drops in a long time.
OPEC has not been able to conclude an agreement with Russia on a further reduction in production in order to support oil prices. They have fallen sharply due to concerns about the corona virus. Saudi Arabia insisted on a production cut, but Russia did not want to admit it. As a result, cracks have been created in the years of cooperation between OPEC and Moscow in reducing production and the way is open for production increases by oil countries next month. An agreement on production limitation between OPEC and its allies will then expire.
Since January, oil prices have fallen by more than a third. The global economy and air traffic are being hit by the corona virus, which, together with the large supply on the oil market, is affecting prices.