Oil prices in the international market rose by 12 percent following news of a reconciliation between Russia and Saudi Arabia, but oil prices fell again after contract details were not revealed.
It is understood that business activities have been frozen due to Corona virus worldwide, which has led to lower prices in the last 12 to 18 years due to reduced demand for oil in the global market.
The sharp decline in crude oil prices in the global market began when Russia, the leading oil producing country, refused to approve the demand for OPEC, a 14-nation oil-producing organization led by Saudi Arabia.
Saudi Arabia wanted Russia, including OPEC, not to be a member of OPEC, to reduce oil production to maintain oil prices in the global market, but after Russia's refusal, OPEC countries declined to cut crude oil production. Due to which oil prices are constantly going down.
According to a British news agency Reuters, at a video conference meeting between Russia and Saudi Arabia led by OPEC countries today, the two sides agreed on a 20 million barrel daily decline in oil prices.
According to Reuters, another source said the number is 100 million barrels a day, which will be gradually reduced over two years.
Oil prices in the global market have risen by 12% following the news of a major oil producing agreement.
Prices went down again after contract details were not revealed
In the global market, US crude oil fell from $ 24.36 a barrel to $ 28.36 a barrel, while Brent crude oil fell from $ 32.36 to $ 36.40 a barrel.
However, oil prices dropped again after the contract details and the actual volume of production dropped.
US crude is currently being sold at $ 25.33 a barrel in the global market while Brent crude oil is trading at $ 33.15 a barrel.
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