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18.03.202017:26 Forex Analysis & Reviews: Oil - a collapse of up to $23. 03/18/2020. Epidemic and price war = disaster

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Exchange Rates 18.03.2020 analysis

Oil fell to the lowest values since 2003-to $23.50.

One of the factors of the price drop was created by Russia - the conflict and price war with OPEC was deliberately started by Russia. Russia abandoned the deal with OPEC to limit production - to maintain prices. There are different points of view - how much this has affected the price drop, and how much - on the understanding of the market that as a result of the coronavirus pandemic, the demand for oil will sharply drop.

Either way, both factors - the pandemic and the Russia - OPEC price war - combined to cause a disaster.

We can assume that soon we might see the lowest price for oil - but in the conditions of a pandemic, the price of oil may remain near the lows for a long time.

Jozef Kovach
Analytical expert of InstaForex
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