Oil Crashes 30% over Saudi-Russian Crude Price War, Coronavirus Fears

By Staff, Agencies

Oil plunged nearly 30% in a chaotic market opening, with main crude benchmarks Brent and WTI both trading below $35 a barrel amid fears of an all-out price war following the collapse of an output cut deal between Russia and OPEC.

Asian markets opened with a massive gap on Monday, with Brent falling nearly 30 percent to $31.38 per barrel within seconds, while WTI dipped below $28 – the lowest since 2016 – before bouncing back slightly.

On Saturday, Saudi Arabia announced a stunning discount of $6 to $8 per barrel to its customers in Asia, Europe, and the US – and said it would boost oil production despite the global economic slowdown and crude demand drop.

The sudden move was seen as a sign of an all-out oil price war, after a supply cut deal between Russia and OPEC collapsed.

OPEC and non-OPEC states held consultations in Vienna on Friday, but failed to reach an agreement on additional oil cuts despite concerns over the coronavirus outbreak, which created an “unprecedented situation.”