Saudi Russia Agreement

As a result of the COVID-19 pandemic, plant production and transportation demand have fallen, which has also led to a decline in overall oil demand and lower oil prices. [14] On February 15, 2020, the International Energy Agency forecast that demand growth would fall to its lowest level since 2011, with growth of 325,000 barrels per day over the full year, to 825,000 barrels per day and a decrease in consumption of 435,000 barrels per day in the first quarter. [15] Although global demand for oil has declined, a drop in demand in Chinese markets, the largest since 2008, triggered an OPEC summit in Vienna on March 5, 2020. Oil prices had already fallen by 30% since the beginning of the year due to a drop in demand. [4] The struggle for prices is one of the main causes and effects of the global stock market crash that followed. [5] “Any agreement to extend the reductions is subject to the condition that countries that did not fully comply with their reductions in May deepen their reductions in the coming months in order to compensate for their overproduction,” the source said. . .

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