April crucial month for oil prices

April will be a crucial month for the oil industry. Already with a decline of more than 65 percent and still continuing with the same tendency, prompted by the Coronavirus crisis and the price struggle between Saudi Arabia and Russia, crude oil prices will decline even further when Saudi Arabia and others return to wells for further growth after the April 1st OPEC agreement.

The $20 barrel oil was unimaginable a few months ago, while now some forecasts point out that prices will be as low as 10 dollars can reach, as excess production will cause more deposit space to be lost at a time when the world economy is contracting significantly.

But when the situation calms down, many analysts believe it will definitely be Saudi Arabia, with its excessive confidence in oil revenues coming out again.

The Kingdom is willingly causing losses in itself by lowering its sales prices, with the commitment to increase production to more than 12 million barrels a day -- a record level -- as efforts to reduce production together with Russia failed.

After that, the very kingdom has stressed that it will flood the super-producted markets as a threat against Russia, which does not take part in the deal.