An oil worker operates valves in a field north of Basra, Iraq
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Iraqi workers stand near a pipeline as it ejects oil at Al Tuba oil field in Basra, southeast of Baghdad
The oil saga continues In case you missed it: Global demand for oil has crashed thanks to the common denominator of all spring 2020 ails — the novel coronavirus. Meanwhile, Saudi Arabia and Russia have been locked in a price war, after negotiations to limit supply collapsed last month. Together, these forces have caused the price of oil to nosedive, falling by as much as 65% earlier this week, relative to the start of the year. What’s new: Starting this month — when demand could bottom out — Saudi Arabia is boosting supply by as much as 25%. This “tsunami,” as one research group called it, could plunge the price further into the ground.
But: Signs that an agreement is coming together among a coalition of oil-producing nations known as OPEC Plus to pare back supply are buoying the price. OPEC Plus is hosting an emergency virtual meeting on Monday to discuss cuts, Bloomberg reports. Meanwhile, President Trump is meeting with executives from several US oil giants later today to discuss solutions to the price crisis, which could include tariffs on oil imports. The price of oil surged more than 40% on Thursday in response to the news. But at around $33 this morning, Brent is still down about 50%. Don’t hold your breath: “Because of the lags we anticipate in implementing the cut and the already occurring demand collapse, a coordinated response is therefore likely to be too little too late,” Goldman Sachs said in a note yesterday.
Gas prices are falling across the country in the wake of the novel coronavirus, which has stunted global oil demand.
Joe Raedle/Getty Images
When oil is down, who wins?Drivers. Cheap oil means c
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