End of Crude Price War

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End of Crude Price War

Oil crashes up to 31% worst loss since 1991 due to the price war that erupted between Russia and OPEC countries. OPEC is Organization comprises 15 Member Countries – namely Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, IR Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. These countries have rich oil resources and have a major contribution to the production of crude oil.

CountryOil production
2019 (bbl/day)[1]		Oil production per capita
2017 (bbl/day/million people)[5]
-World production80,622,00010,798
01 United States[6]15,043,00035,922
02 Saudi Arabia (OPEC)12,000,000324,866
03 Russia10,800,00073,292
04 Iraq (OPEC)4,451,516119,664
05 Iran (OPEC)3,990,95649,714
06 China3,980,6502,836
07 Canada3,662,694100,931
08 United Arab Emirates (OPEC)3,106,077335,103
09 Kuwait (OPEC)2,923,825721,575
10 Brazil2,515,45912,113
11 Venezuela (OPEC)2,276,96769,914
12 Mexico2,186,87717,142
13 Nigeria (OPEC)1,999,88510,752
14 Angola (OPEC)1,769,61561,417
15 Norway1,647,975313,661
16 Kazakhstan1,595,19988,686
17 Qatar1,522,902500,000
18 Algeria (OPEC)1,348,36133,205
19 Oman1,006,841217,178
20 Libya (OPEC)1,003,000159,383
All trouble started one month back when disagreement rose between Saudi Arab and Russia on the production of Crude oil. Saudi Arab wants Russia to cut production of oil so that price of Crude stays comfortable in the market. The price of crude was affected due to less demand. But Russia broke his 2018 agreement i.e in this Russia will do production cut with OPEC countries. Due to this Saudi Arab did overproduction of oil and made crude oil prices crash to teach the lesson to Russia. 

The price of crude oil fell $31 from $45 various expert projected and said it will go around $10 per barrel. Global slow down and COVID-19 have adversely affected demand of oil into the market.






After a long price war which lasted for nearly one-month now, U.S  have to intervene in this war. Due to this war U.S has faced loss, as the U.S shall produce oil maximum oil. Mr. Trump had discussed with OPEC and Russia and told them to come to an agreement. Now Russia is ready to do a production cut of 9.7 million barrels. Due to this price of crude will be Bit stable now. In the last trading session, it has recovered and trading around $32. Price to crude for next one year will range around $30-40 per barrel. Due to the global lockdown demand for crude is very plummeting.










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