Notifications of oil price cuts are coming to the Federal Ministry of Commerce, was confirmed to Patria news agency.
“Notices of reduction are coming to the Ministry. I can’t say it’s a massive number, but there are a solid number of them. Since last week, oil prices have fallen by an average of 5 pfenings. The price of diesel is from 2.21 BAM to 2.23 BAM and is lower than on Friday,” was stated from the Ministry for Patria.
Oil prices on the world market have fallen dramatically due to coronaviruses and the fact that OPEC and Russia have not reached an agreement to reduce production.
Sunday morning, Saudi Arabia dropped its own oil weapon. Its latest plans will not only reduce its unrefined price to Chinese consumers by as much as $6 or $7 per barrel, but it is also reportedly looking to increase its daily unrefined output by as much of as 2 million barrels per day into an increasingly oversupplied international market.
The shocking move by the Saudis is both a market share grab as well as a loud signal to Moscow that it is finished playing games.
Within seconds of the market opening on Sunday night, oil prices plummeted as much as 30 percent, driving crude to its lowest level in four years. The Brent crude benchmark fell from $45 a barrel to $36.44 at the time of writing, while WTI plummeted from $40.45 to $32.97, in one of the single worst drops in recent history, Oil Price reports.