War Of Pecios Del Petrolio Between Russia And Saudi Aramabia.

War of Pecios del Petrolio between Russia and Saudi Aramabia.

1. ABSTRACT

On March 8, 2020, Saudi Arabia began a protectionist confrontation with the Russian Republic, which caused a basic fall in oil spending. The cost of oil in the United States fell 0.34 pips, the cost of non -refined oil a 0.26 pips and the cost of Brent oil a 0.24 pips. Brent oil, which used to represent 0.66 non -refined oil pips in the world, found the biggest decrease since the 1991 Gulf War on the night of March 8. Thinking about this, it was the Smoot-Hawley tariff law that accelerated a break in generalized trade during the great depression, orchestrating with the dissemination of the East Texas oil field during the Texas oil explosion. The fears of war for the value of oil between Russia and Saudi Arabia caused a fall in the US reserves.UU. and have particularly affected the manufacturers of the US bituminous slate.UU.

two. ANALYSIS

On March 8, 2020, Saudi Arabia began a confrontation with the Russian Republic, which caused an oil drop. The cost of oil in the United States fell 0.34 pips, the cost of non -refined oil a 0.26 pips and the cost of Brent oil a 0.24 pips. The War of Securities was activated by a break in the discourse between the Organization of Petroleum Exporting Countries and Russia on the proposed cuts for the creation of oil in the midst of the CORONAVIRUS Pandemia of 2019-20. Oil costs had just fallen 0.30 pips from the beginning of the year due to a sought fall.

The drop in costs was one of the reasons for the rupture of world financial exchange on March 9, 2020, known informally as ‘Black Monday’.

The decrease in the demand for movement and the absence of assembly action due to the episode essentially affected interest in oil, making its value fall. In mid -February, the International Energy Agency anticipated that the development of the oil application in 2020 would be the smallest since 2011. The fall of Chinese interest caused a meeting of the Organization of Petroleum Exporting Countries (OPEC) to examine a possible ongoing slice to adjust the loss of interest. Initially, the cartel agreed to reduce oil creation by 1.5 million barrels per day after a meeting in Vienna on March 5, 2020, which would take the levels of creation to the smallest level from the Iraq war.

On March 8, 2020, Saudi Arabia declared the creation of crude oil and would sell it with a discount (from 6 to 8 dollars per barrel) to clients from Asia, the United States and Europe, after the agreements were broken, whileRussia opposed the call to reduce creation. The biggest limits were for Russian oil clients in northwest Europe. Before the statement, oil spending had dropped more than 0.30 pips since the beginning of the year, and after the announcement of Saudi Arabia, it lowered another 0.30 points, although it recovered a little at that time. The Brent Oil, which used to speak at 0.66 pips of flexible oil in the world, found the greatest fall from the 1991 Gulf War on the afternoon of March 8. In addition, West Texas Intermediate spending fell to its smallest level since February 2016. The master of vitality Bob McNally noticed it: ‘This is the first tour since 1930 and 1931 in which a huge stun of negative interest has corresponded to an stunning of grace’ considering all this, it was the law of tariffs smoot-hawley thethat accelerated a break in the universal exchange during the great depression, harmonizing with the revelation of the East Texas oil field during the Texas oil explosion. The fears of war for the value of oil between Russia and Saudi Arabia caused a fall in the US reserves.UU. and have particularly affected the manufacturers of the US bituminous slate.UU.

3. Precedents

As of 2014, the creation of EE shale oil.UU. expanded its part of the general industry;As the different manufacturers continued to deliver oil, the costs were reduced from more than $ 114 per barrel in 2014 to around $ 27 in 2016. In September 2016, Saudi Arabia and Russia consented to participate in the value of the oil executives, making a casual coalition of the OPEC and not OPEC. By January 2020, OPEC+ had decreased oil creation by 2.1 million barrels per day, with Saudi Arabia making the highest creation cuts.

Due to the 2019-2020 Coronavirus pandemic, the creation of plants and the transport application decreased, which additionally reduced oil demand and caused oil costs to go down. On February 15, 2020, the International Energy Agency reported that the development of applications would be reduced to the minimum rate since 2011, with a 325 development.000 barrels per day at 825.000 barrels per day, and a withdrawal in the use of 435.000 barrels per day. Although the oil demand was decreasing in every way, a popular fall in China’s business sectors, the largest since 2008, made the highest point of the OPEC be reached in Vienna on March 5, 2020. At the highest point, the OPEC agreed to reduce the creation of oil by 1.5 million additional barrels per day until the second quarter of the year (a total cut of the creation of 3.6 million BPD from the first agreement of2016), and trust the meeting to study the agreement on June 9 during its next meeting. The OPEC asked Russia and other individuals not belonging to the OPEC to conform to the OPEC choice. On March 6, 2020, Russia excused enthusiasm, pointing out the end of the casual association, with oil costs falling 10% after the announcement.

In February 2020, the Trump association limited the help of the largest oil association in Russia, Rosneft. Russia may have seen the oil war as a way of dealing with the fight against US sanctions.UU.

4. Events

On March 8, 2020, Saudi Arabia detailed surprisingly high restrictions of 6 to 8 dollars for each barrel to clients from Europe, Asia and the United States. The statement triggered a free fall in oil costs and different results that day, with the Brent falling 30%, the greatest fall from the Gulf War. The West Texas Intermediate, an evaluation of crude oil used as a reference in oil spending, a 0 fell.20 pips. On March 9, 2020, the stock exchanges around the world reported highlight. The impacts felt out of oil costs and also in financial exchanges;After the statement, Russian ruble fell 7% to its smallest level in four years against the US dollar. In the days following the statement, the costs of oil and markets recovered to some extent, with the costs of oil rising 10%, and most stock exchanges recovered the day after black Monday. On March 10, Saudi Arabia declared that it would extend the production of 9.7 million barrels per day to 12.3 million, while Russia would start oil production at 300.000 barrels per day. On March 16, 2020, oil costs suffered one of the most notable falls in recent times. Brent crude oil barrel fell 10.19% with a cost of $ 30.40. While the WTI in New York fell 7.09% to $ 29.43. On March 17, 2020, the oil feature continues to fall directly, the Brent barrel was at $ 29 and the West Texas Intermiadete was 27 dollars before the end of the day.

On March 18, 2020, the market fell again due to excess supply and the fall of world interest in Covid-19 pandemic. WTI barrel was at the end of the day at $ 20.37, a strong fall of 24.4% to a minimum since February 2002 and Brent oil was [image:] at $ 25.86, a 9% drop.

5. EFFECT

3.1 Saudi Arabia: Saudi Aramco will decrease capital uses from 35-40 million dollars scheduled to 25-30 billion dollars.

3.2 Markets: The collapse of oil costs has prompted this Russian-Saudí exchange war, perhaps registering the most pronounced fall since 1991, during the Gulf War. This abrupt decrease occurs in the midst of the world emergency due to the Covid-19 Coronavirus pandemic and has caused a strong fall in values of values worldwide.

3.3 different manufacturers: in the light of the fall of value, numerous oil manufacturers in North America suspended the drilling of new wells. Shash oil manufacturers in North America mostly require oil costs above $ 40 per barrel to support activities, in addition, cuts in the new oil fields depend on the adjustment of normal improvement in oil formationfrom USA.UU. The conjecture of the United States Energy Information Administration shows that the creation of non -refining oil of the United States would fall from 13.2 million BPD in May from 2020 to 12.8 million BPD in December 2020 due to theWar of values, and then declined 12.7 million BPD in 2021. Iraqi and Kuwaitis oil manufacturers also reported cost limits to their customers, despite the fact that Iraq reduction was lower than Saudi Arabia. The United Arab Emirates also declared an expansion ongoing 4 million BPD, more than the creation limit evaluated by the nation of 3.5 million BPD. Iran, following the Saudi Arabia model, discounted the costs of April oil agreements. The failure of advertising on oil caused a new blow to the demolished economy of Venezuela, deeply dependent on its diminating unrefined creation, currently harmed by the sanctions of the United States and the cruel political, monetary and social emergency that is taking placeSince 2014. Nicolás Maduro addresses OPEC’s accomplices to advance in the direction of agreements that restore harmony in the oil market and accept that people not belonging to OPEC reach an understanding.

6. Oil at a negative price for the first time in history

Oil costs remained discouraged during the rest of March. On April 2, the president of the United States Donald Trump said that a decrease of 10-15 million barrels in progress would be conceivable, referring to the agreements between Russia and Saudi Arabia that he dribbled in the background. The next day, Russian President Vladimir Putin asked the Minister of Energy Alexander Novak to organize an unprecedented OPEC meeting and proclaimed that world creation could decrease by 10 million barrels. In the light of Putin’s announcement, oil costs increased. In fact, even with a cut of 10 million BPD, the International Energy Agency evaluated that world oil warehouses would increase in any case by 15 million BPD. The director of the IAE, Fatih Birol, said that 50 million occupations identified with refining and retail sale were in danger worldwide. Petroleum costs in the United States increased by 25% on April 2, the highest increase of one day in history. Brent oil rose to 32 dollars on April 3. Then, on April 3, the remote and vital priests of Saudi Arabia proclaim+. OPEC anticipated that the petition should fall at 6.8 million barrels, and then fall to 35 million barrels. On April 9, OPEC and Russia consented to decrease by 10 million barrels. The United States anticipated that their creation should fall into 2 million barrels before the end of the year. OPEC asked Mexico to decrease by 400.000 barrels. Mexico proposed to reduce its oil creation by 100.000 barrels for two months, 1.781 million barrels at 1.681 million barrels.

The distinction in the cost of transport of the WTI between months caused a strange High Account;Buying modest oil to store it for later marketing. On April 20, the cost of WTI oil for transport in May (which ends on April 21) fell into a negative domain (-37 dollars/barrel) unprecedented in the written history in view of the discouraging interest and the lackof storage limit, especially in the WTI measurement zone in Cushing, Oklahoma, where pipelines are located and the capacity limit is 92 million barrels. Brent oil fell to 18 dollars per barrel.

7. REFERENCES

• BBC News World. (March 9, 2020). Saudi Arabia vs Russia: The price war that sank the value of oil and world bags in the middle of the crisis by the coronavirus. Recovered from https: // www.BBC.com/world/news-51796524
• Brown. P. (March 19, 2020). The oil war between Russia and Saudi Arabia reaches the supplier. Recovered from https: // www.the world.ES/ECONOMY/CURRENT-ECONOMICS/2020/03/19/5E72591E21EFA08F318B45A3.HTML
• Euronews. (March 9, 2020). The price of oil collapses in the middle of a war between producing countries. Recovered from https: // www.Youtube.com/watch?V = 4BOSYFOUXYY
• Spanish DW. (March 9, 2020). Oil falls to historical minimums. Recovered from https: // www.Youtube.com/watch?v = fcwezdlefpm
• Egan. M. (April 20, 2020). "Panic" in the oil world: crude oil reaches less than US $ 0 per barrel, the lowest price since the oil futures trade was opened in 1983. Recovered from https: // cnnespanol.CNN.com/2020/04/20/Panico-in-the-Mundo-Petrolero-El-Crudo-Se-Despome-Un-0-Por-Barril/
• Briefcase. (March 18, 2020). How much Venezuela loses with the war of oil prices? Recovered from https: // www.briefcase.CO/INTERNATIONAL/HOW-PIREDE-VENEZUELA-CON-LA-GUERRA-DE-LOS-PECRIOS-DEL-PETROLEO-538986