According to the information published by The Wall Street Journal, Iran, Iraq and Saudi Arabia are going to cut their oil prices next month. Experts say this is a forced step since lower prices are required to preserve their share of the Asian market.
According to Masterforex-V Academy, Saudi Arabia is going to cut its oil prices by $0,3. Iraq and Iran are going to do the same - $0,35 and $0,5 discounts respectively. Apparently, such steps come as the result of the long-lasting economic slowdown in China, the world’s biggest importer and consumer of crude oil. Another major reason for the mentioned price discounts is the fact that the global and local oil oversupply is still high despite the fact that the USA has been cutting its oil production so far.
As you probably know, last summer, OPEC decided to keep on producing crude oil at the same pace no matter what. This has been increasing the global oversupply since then. With that said, the latest discounts can now be considered as the next step in the international economic war between the world’s biggest oil exporters, Masterforex-V Academy reports.
The updated report says that more affordable oil prices triggered a short-term increase in the demand for crude oil.
However, later on, Brent oil dropped down in price to $46.5/b in London yesterday. This is a 3,5% as opposed to Friday’s close.
It is also interesting to note that Venezuela announced OPEC’s joint efforts aimed at backing oil prices. In particular, it is about coming up with basic oil pricing principles for various regions across the globe. This idea is going to be offered to both OPEC and non-OPEC members of the oil community.
