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Oil Prices Tumble, Markets Assess Virus Demand Impact

Oil-producing countries cut crude production. The decline in Saudi Arabia in December amounted to 3 percent, with unchanged exports amount of 7 million 373 thousand barrels per day. But still the reduction in December 2018 amounted to 4.1 percent.

oil rates declinePhoto: Flickr

The Saudi Arabia’s oil production declined from 9,89 million in November to 9,59 million barrels per day in December. Meanwhile, in annual terms, the indicator dropped by 9.9 percent.

Meanwhile, Iraq in December reduced oil exports by 3.2 percent at monthly basis and by 6.5 percent at annual rate to reach 3,87 million. Production in the country decreased by 1.3 percent over the month – to 4,535 million, although compared to December 2018 reading it is an increase of 1.6 percent.

Oil production in Venezuela fell from 912 thousand in November to 907 thousand in December. One should mention, that a year ago, the country produced 1,511 million barrels per day.

In December, the United States also  cut production – to 12,861 million compared with 12,879 million in November. At the same time, the indicator grew by 6.8 percent, from 12,38 million.

Meantime, the oil exports in U.S. rose, reaching 3,638 million barrels per day in December against 3,23 million in November and 2,511 million in December 2018.

Oil prices tumble, traders are assessing incentives measures aimed at mitigating the impact of the virus on the economy.

Brent oil futures lost 1.46 percent, to reach $56,83 per barrel at 0750 GMT, while U.S. WTI light crude eased by 1.19 percent, to $51,69 per barrel on Tuesday.

Source: CNBC