On Tuesday 10 March 2020, oil prices plunge up to 8% after the biggest fall since 1991, despite the price war between two leading producers of oil Saudi Arabia and Russia, oil investors view some possibility of economic rise.
On Monday, the US president declared that he will be taking active measures to restore the economy amid fears of coronavirus.
Brent crude rose around 7.3% a barre becoming $36.87 whereas the WTI crude increased up to 6.9% a barrel.
After the pact between Saudis, Russia, and other producers, the trading has been increased than the previous sessions, which fell apart since the down of the stock market.
Asian shares plunged more than their historic lows, the situation was calmed by coordinating with the global banks and government.
The largest consumer of oil, China is struggling to extract this virus out of the country, using mobile monitoring.
Although raise won’t be permanent as the demand for oil will be affected by the coronavirus’ economic impact. The crude is turned out to be hope for settlement fo the US.
Saudis are planning to raise the output of crude oil up to 10 million barrels per day in the coming month from the recent yield of 9.7 million BPD. This raise will automatically attract the refiners to buy more.
After the US and Saudia, Russia is also considering lifting the output ratio to cope with the prices for almost a decade.