Crisis: Coronavirus and oil add to global tension

The spread of coronavirus added to the oil price dispute has generated great global tension and increased the chances of a global recession. Experts say that while the oil price dispute between Saudi Arabia and Russia has exacerbated the global crisis, the new coronavirus agent, covid-19, discovered in December last year, will have a much greater impact on the economic scenario International. 

“The standoff between Russians and Saudis is timely,” Vitoria Saddi, a professor at Insper told Valor Econômico magazine. On the other hand, in the last week, the WHO (World Health Organization) declared a pandemic of the virus, which means that recurrent transmission is occurring in various parts of the world simultaneously. 

However, despite being considered a less worrying element, the dispute over the price of the commodity between Saudi Arabia and Russia is also a factor of instability. Petrobras, for example, lost R$ 91 billion in market value in a single day. 

In addition, the sector has been in a tumultuous way since Saudi Aramco announced an increase in oil production and lower prices, after Russia vetoed an agreement to reduce the supply of the product by the Organization of Petroleum Exporting Countries and (Opec+).


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