Jump to content
  • 0

Oil Rally

Simon Mugo


1 answer to this question

Recommended Posts

  • 0

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.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Create New...