Medvedev: what is happening in oil markets is like a Cartel conspiracy

Russian Security Council Vice President Dmitry Medvedev stressed that what is happening in oil markets is like a Cartel conspiracy.

Medvedev wrote on Facebook, on Monday evening, “What we are seeing with the issue of oil futures contracts is very similar to the Cartel conspiracy“.

He added: “Based on our experience in the gas sector, we offer to sell oil on a take or pay basis. We are ready to discuss this option with partners”.

The price of a barrel of US oil fell sharply during Monday’s trading, by more than 306%, The lowest level in its history, As the price of a barrel was $ 37.63 below zero.

This coincided with the pandemic pressures on the global economy and its threat to erase a decade of demand growth, caused it to lay off millions of their jobs, and wiped out hundreds of billions of dollars of corporate market value.
However, technical factors played a role in the decline in May futures prices, which expire on Tuesday, which prompted traders to sell them quickly. However, June delivery contracts did not deliver from losses and fell by 13% to $ 21.80 a barrel. , Until now.

Since the beginning of the year, crude prices have fallen by more than 80%, or $ 50 a barrel, due to the repercussions resulting from the outbreak of the coronavirus and the collapse of the “OPEC +” agreement last month, before the producers remedied the matter this month and approved a historical reduction share. Analysts say the agreement came too late, allowing huge volumes of supply to pass to the market.

Source: Sputnik