Crude oil prices plunge: Saudi Arabia vs Russia [Ryuji Sato]

Ryuuji Satou Profile

Satou Ryuuji. Born in 1968. After graduating from a US university in 1993, he joined a marketing company and later joined Genesis Corporation (now Oval Next), a information vendor for finance and investments. He engages in macroeconomic analysis, writes analyst reports on forex, commodities, and stock markets, and participates in trading. Since 2010 he founded “H-Square Co., Ltd.”, writes analyst reports, plans and publishes works such as “FOREX NOTE Currency Manual,” and serves as a radio program caster related to investments. Individual trader. Member of the International Federation of Technical Analysts; Certified Technical Analyst. Main caster on Radio Nikkei’s “The Money Onosato’s Market Forecast” (Mondays 15:00–).

Official site:Satou Ryuuji Blog

*This article is a reproduction and revision of an article from FX攻略.com, June 2020 issue. Please note that the market information described in the body text may differ from the current market.

Decline to a 2002 Low

Due to the spread of the novel coronavirus, financial markets have become highly volatile. The Dow Jones Industrial Average has moved over 2,000 dollars in a single day, creating a remarkably abnormal development. The oil price collapse is considered to have contributed to this financial market turmoil. In this article, we will consider the path of the oil market that has fallen to its 19-year low.

On March 6, at the OPEC meeting with member countries and non-members (the so-called OPEC Plus), Russia rejected proposals for additional production cuts and extension of cuts. As a result, the Saudi-led OPEC Plus coordinated production cuts that had been agreed in December 2016 ended, and price competition suddenly began.