As on a roller coaster, oil trade developed on Tuesday. The brent price first shot to $ 78 a barrel, to drop below $ 75 in the afternoon of Central European Summer Time. The failure of the OPEC + countries to act is to blame.
Representatives of OPEC countries and their allies, led by Russia within the OPEC + group, were scheduled to meet on Monday to discuss expanding oil production. This has become significantly more expensive in recent months, and the price of brent crude has already risen above pre-ideal levels.
But the talks eventually went bankrupt because two key players, Saudi Arabia and the United Arab Emirates, could not agree on whether and how black gold mining should develop in the coming months.
The price of both brent and WTI oil first shot up, as the collapse of the negotiations came as a surprise to the market. Indeed, demand for oil is generally expected to continue to rise, and if the supply side does not respond by increasing production, black gold will become more expensive.
But after a few hours, oil began to fall dramatically. Expectations began to prevail in the market that some OPEC + countries would not meet the agreed production quotas and would supply more oil to the market. Brent crude fell from nearly $ 78 a barrel to less than $ 75.