The collapse in world oil prices is “A very good news” for consumers but “not necessarily for the French economy”, said Minister of Finance Bruno Le Maire on Monday.
The fall in prices occurred on Monday due to fears of a spread of the coronavirus, “is very good news for all those who fill up”, said on France Inter M. Le Maire, assuring that the fall in prices would “echo at the pump”.
“They must have repercussions, I have already had the opportunity to say this to the oil companies as quickly as possible,” insisted the minister, saying that “the repercussions” should be “symmetrical”.
Beyond the gain in purchasing power for consumers, the collapse in the price of a barrel “is not necessarily good news”, however warned Bruno Le Maire, regretting a lack of “coordination between the major economies of the planet”.
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In question, according to him: the psychological impact of this decline on the markets. “Having oil prices that drop too much worries the markets”, which “repercussions on the financing of our companies and therefore on our economy”, he detailed.
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Oil prices collapsed on Monday, to $ 33 a barrel of Brent crude, after failed talks between the Organization of the Petroleum Exporting Countries (OPEC) and Russia over production cuts to support affected prices by the epidemic of new coronavirus.
Moscow, the world’s second largest oil producer, has indeed opposed a further reduction of 1.5 million barrels per day. In response, Saudi Arabia embarked on a massive clearance sale by making the largest reduction in its oil prices in 20 years, according to Bloomberg News.
“I will have the opportunity to call the Saudi finance minister”, said Bruno Le Maire on Monday. “I hope that Saudi Arabia, as president of the G20, enters into a coordination on this question of the price of oil so that we avoid that it shakes the markets”, he explained.