Addis Ababa, March 10, 2020 (FBC) -With oil erasing over a third of its value this week after a messy breakup of the OPEC+ alliance, OPEC members were bleeding over half a billion dollars a day in lost revenue, according to Reuters calculations.
For the most part, oil is a top income source for members of the Organization of the Petroleum Exporting Countries and such a dramatic fall in prices will put strain on their economies, some of which such as Iran and Venezuela, are already on the brink.
Brent LCOc1 crude futures were down by as much as 31% to $31.02 on Monday, their lowest since mid-February 2016.
At that low, prices were down nearly $20 a barrel from a high before the meeting of OPEC and its allies on March 6.
This means that in total, and based on their average February production, OPEC members lost more than $500 million in revenue, according to Reuters calculations.