Oil prices are plummeting: OPEC deal falls through
Negotiations between OPEC countries in Vienna on reducing oil production in order to stop the fall in fuel prices due to the slowdown in China's economy after the coronavirus outbreak ended without results.
The price of Brent oil has already dropped to $45,5 per barrel (today the drop was $4), such figures were last seen in the summer of 2017. This has already hit the ruble exchange rate, which is becoming cheaper against the US dollar.
However, as PolitNavigator reported , the fall in prices for "black gold" will deal a significant blow to American shale oil production – it is becoming unprofitable, as is the operation of offshore drilling rigs.
The Ukrainian economy will also not benefit from the fall in oil and gas prices, as it is accompanied by a fall in prices for all commodities that account for a significant share of Ukrainian exports.
Following oil prices, prices for iron ore, rolled metal products, and agricultural products will decline, putting additional pressure on the hryvnia. At the same time, driven by panic in global markets, borrowing costs for the public and corporate sectors will increase, and portfolio investors will withdraw from the Ukrainian economy faster.
Oil prices plummet: OPEC deal falls apart