Opecs pact with russia falls apart sending oil into tailspin

You're referring to the recent developments in the global oil market!

Yes, you're correct. The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries like Russia, has been a key player in shaping the global oil market. However, the pact between OPEC and Russia has indeed fallen apart, leading to a significant impact on oil prices.

Here's a brief summary of what happened:

In March 2020, OPEC and Russia agreed to cut oil production by 9.7 million barrels per day (mb/d) to stabilize the global oil market, which was severely impacted by the COVID-19 pandemic. This agreement, known as the OPEC+ deal, was intended to reduce the global oil supply and support prices.

However, in April 2020, Russia refused to extend the production cuts beyond May 2020, citing concerns about the economic impact of the pandemic on its own economy. This led to a disagreement between OPEC and Russia, and ultimately, the OPEC+ alliance collapsed.

As a result, oil prices plummeted. On April 20, 2020, the Brent crude oil price fell to its lowest level since 2003, trading at around $20 per barrel. The WTI crude oil price also dropped to around $17 per barrel, its lowest level since 2001.

The collapse of the OPEC+ pact has led to a surge in oil production, particularly from the United States, which has increased its output to take advantage of the lower prices. This has further exacerbated the oversupply in the global oil market, putting downward pressure on prices.

In recent weeks, oil prices have stabilized somewhat, but they remain volatile and sensitive to changes in global demand and supply. The ongoing pandemic, economic uncertainty, and the ongoing trade tensions between the United States and China are all contributing factors to the current oil market dynamics.

It's worth noting that the collapse of the OPEC+ pact has also led to increased tensions between OPEC members, particularly Saudi Arabia and Russia, which has raised concerns about the long-term stability of the global oil market.

I hope that helps clarify the situation!