Brent, WTI futures CRASH 20% over Saudi Arabia-Russia oil price war fears & coronavirus concerns
by RT
Brent, WTI futures CRASH 20% over Saudi Arabia-Russia oil price war fears & coronavirus concerns
Oil plunged more than 20% in chaotic market opening, with main crude benchmarks, Brent and WTI, trading below $35 a barrel amid fears of an all-out price war following the collapse of an output cut deal between Russian and OPEC.
Asian markets opened with a massive gap on Monday, with Brent falling nearly 30 per cent to $32.05 per barrel within seconds, while WTI fell some 27 per cent to around $30 – the lowest since 2016 – before bouncing back slightly, to $35.3 and $32 respectively.
On Saturday, Saudi Arabia announced a stunning discount of $6 to $8 per barrel to its customers in Asia, Europe and the United States – and said it would boost the oil production despite the global economy 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 the Organisation of the Petroleum Exporting Countries had collapsed.
Wow. Oil prices falls 30% immediately after market opens as Saudi Arabia launches oil price war.
The OPEC and non-OPEC states held the consultations in Vienna on Friday, yet failed to reach an agreement on additinal oil cuts despite concerns over the coronavirus outbreak that created an “unprecedented situation.”
“From April 1 neither OPEC nor non-OPEC have restrictions,” Russian Energy Minister Alexander Novak told reporters, while Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said: “I will keep you wondering.”
