The price of Russian oil has fallen to its lowest level since 1999

The price of one barrel of Urals oil supplied to North-Western Europe dropped to 16.2 US dollars. This is the lowest value in 21 years.

The cost of Russian Urals oil supplied to Northwestern Europe dropped to $ 16.2 per barrel. This is the minimum level since June 1999, reports Argus Media on Monday, March 30. According to its data, a barrel of Russian grade fell in price by $5.51 a week.

According to the agency, the pandemic of COVID-19 caused by coronavirus SARS-CoV-2 led to a significant decline in global economic activity. This caused a drop in demand for many oil products in the world. Thus, a few hours earlier, the prices of Brent and WTI oil grades have fallen to their lowest levels since 2002.

In early March, members of the organization of oil-exporting countries (OPEC) and its partners at a meeting in Vienna could not agree on further reduction of oil production by an additional 1.5 million barrels per day. In particular, Saudi Arabia insisted on the reduction, while Russia opposed it. This has aggravated the situation and will lead to an increase in the supply of raw materials in the global oil market, traders believe.