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Sunday, March 8, 2020

Oil Down About 30%, Biggest Since Gulf War, as Saudi Cuts Price After Failed OPEC Deal

Oil fell by the most since 1991 on Monday March 09,2020 after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the coronavirus outbreak

Brent crude futures fell by as much as $14.25, or 31.5%, to $31.02 a barrel. That was the biggest percentage drop since January 17, 1991, at the start of the first Gulf War and the lowest since February 12, 2016. It was trading at $35.75 at 0114 GMT

US West Texas Intermediate (WTI) crude fell by as much as $11.28, or 27.4%, to $30 a barrel. That was also the biggest percentage drop since the first Gulf War in January 1991 and the lowest since February 22, 2016. It was trading at $32.61

Saudi Arabia, the world's biggest oil exporter, is attempting to punish Russia, the world's second-largest producer, for balking on Friday at production cuts proposed by the Organisation of the Petroleum Exporting Countries (OPEC)

OPEC and other producers supported the cuts to stabilise falling prices caused by the economic fallout from the coronavirus outbreak.

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