Simon Mugo Posted February 7, 2020 Share Posted February 7, 2020 Why did oil prices rally to new highs today? Quote Link to comment Share on other sites More sharing options...
0 Simon Mugo Posted February 7, 2020 Share Posted February 7, 2020 I think you meant, why did oil prices attempt to rally today as they are currently trading much lower. The attempted rally in oil prices happened in the futures market, but did not carry forward into the live trading session. The rally in the futures market was driven by Thursday's recommendations by OPEC+ for further cuts in crude oil supplies, which was vehemently opposed by Russia. The OPEC+ group is made up of countries that are members of OPEC (Organization of Petroleum Exporting Countries) and Russia, which is a major oil exporter. Russia's opposition to the proposed cuts in oil production drove prices lower because it meant that there is likely to be an oversupply of the commodity given the slowdown in global economic activity due to the coronavirus threat. You should also keep in mind that Russia is competing with the US, which is also a big oil producer outside of OPEC+, for geopolitical reasons. Quote Link to comment Share on other sites More sharing options...
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Simon Mugo
Why did oil prices rally to new highs today?
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