Oil prices keep falling, as traders become doubtful
Oil prices returned to the red on April 7. Traders started to doubt if promised production cuts by Russia and Saudi Arabia will in fact help the market crisis.
WTI crude benchmark has gone down 9.4% - US$2.45 - and ended up at US$23.63 per barrel. Earlier the index has risen to US$27.24 after a rapid growth by 32%. Brent crude benchmark has gone down 9.4% - US$1.18 - and ended up at US$32.16 per barrel.
For the last few days the prices have been going up after Donald Trump has announced in a tweet, that Saudi Arabia and Russia are planning to reach compromise about the production cuts. Shortly after, Saudi Arabia has called for an emergency meeting of OPEC. The meeting was supposed to happen on April 7, but then it has been postponed to April 9.
The news made traders optimistic and the major indexes went up. However, now traders are becoming more cautious. John Kilduff, the partner of energy fund Again Capital, has stated that, according to the certain reports, The Russians are planning to cut only around 1 million barrels per day. The Saudis might not choose to cut the expected 3 million barrels per day. One way or another, these steps are unlikely to be of any significance for the market. In 2020, the prices have gone down over 50%.