Oil Left At 7% After Suspension of Trips from Europe to the US
The price of a barrel of oil was trading Thursday with falls of 7% after the Donald Trump announcement yesterday. He declared that foreign citizens who have been to any of the European countries are suspended from entering the States.
Brent crude reached a 7 % decline this Thursday, below 33 dollars. Thus, the barrel of Brent crude at yesterday’s close was at $ 35.79.
For its part, West Texas Intermediate (WTI) oil, benchmark for the United States, was trading before the opening of markets in Europe at $ 31.65, down 4% compared to $ 32.98 at the close of yesterday. The declines are already 6% to $ 30.
Trump is accusing other countries of the failure to prevent the Coronavirus
Donald Trump announced a thirty-day suspension of travel from European countries, belonging to the Schengen Area, as a measure of Coronavirus prevention and control. The suspension applies to 26 European countries. And everyone who has been in those counties in the 14 days prior to their scheduled travel to the US. Trump stated that today’s smart action would prevent the spread of the virus tomorrow. He also called it a “foreign virus,” accusing other countries of their failure to prevent its spread.
The measures the federal government has taken is the most aggressive and comprehensive effort to confront a foreign virus in modern history, Trump said. Critics and health professionals think that the US failed to take adequate measures against the virus.
In addition to the United States’ decision to suspend all trips to the country from Europe announced on Wednesday. The price of a barrel of oil also weighs on the decision of Saudi Arabia to ‘flood’ the markets with crude after failing to reach an agreement last week.
Saudi Arabia announced deep cuts for customers globally after falling out with Russia. Regarding further production cuts to support already struggling prices. The price cuts were deepest for Europe. A move that’s broadly seen as a direct challenge to Russia, one of the region’s biggest oil supplier.
Saudi Aramco, the Kingdom’s state oil company, announced yesterday that it would increase its potential crude production capacity. It will increase to thirteen million barrels per day, compared to 12 million barrels today. Saudi Aramco announced that the company had received the directive from the Ministry of Energy to raise its maximum sustained production from 12 to 13 million barrels per day.
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