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在线翻译:
szdaily -> News -> 
Oil crashes, fears of ‘price war’ up after deal failure
    2020-03-10  08:53    Shenzhen Daily

OIL prices crashed yesterday after Saudi Arabia slashed its official selling price, adding uncertainty to a world economy that continues to struggle with COVID-19.


Saudi Arabia’s national petroleum company Saudi Aramco reportedly plans to raise its production significantly after OPEC’s failure to strike a deal with its allies regarding production cuts, giving rise to fears that tensions between oil producers will exert more pressure on prices. The world’s top oil exporter’s discount has embroiled other oil providers in a “price war.”


Crude plummeted more than 30 percent at a time, marking the hardest drop since the Gulf War in 1991. As of 1:15 p.m. (Beijing Time) yesterday, WTI Crude plunged 31.08 percent and Brent Crude was down 28.50 percent.


According to Bloomberg citing people familiar with the conversations, “Saudi Arabia has privately told some market participants it could raise production much higher if needed, even going to a record 12 million barrels a day.”


“The oil price plunge is predictable,” Shanghai Petroleum and Natural Gas Exchange’s Index R&D Department Senior Supervisor Sero Qu told CGTN.


“The main reason for the price drop is on the supply side,” Qu said. Even though the coronavirus outbreak has had an impact on the oil market, demand is still solid after the central banks entered easing mode.


“And that is why Russia doesn’t want to cut production with Saudi Arabia,” added Qu. “They think the impact of the coronavirus will be temporary, and they don’t want to lose market share by cutting production.”


Qu believes oil prices have not yet bottomed out since history has shown that prices can go as far down as 50-60 percent.


From a short-term perspective, Qu expected the oil prices would tumble due to the price war, but he predicts that prices will bounce back in August or September since the world’s major central banks have eased monetary policies recently.       (CGTN)

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