Crude oil prices fell heavily on Monday morning, the highest since 1991, as Saudi Arabia started a price war with Russia, Reuters reported...
Crude oil prices fell heavily on Monday morning, the highest since 1991, as Saudi Arabia started a price war with Russia, Reuters reported. Saudi Arabia slashed its prices and said it would release its hoarded supply into a market affected by falling demand because of the coronavirus epidemic.
Brent crude futures fell by as much as $14.25, or 31.5%, to hit a low of $31.02 a barrel. That was the biggest percentage drop since January 17, 1991, the beginning of the Gulf War. The prices were at their lowest since February 12, 2016. At 4.02 am GMT, crude oil was trading at $32.17 per barrel, $13.33 lower, or 29.30%, Business Insider reported.
The US West Texas Intermediate was trading 31.37% lower at $28.53 per barrel at 4.02 am GMT, though it had recovered slightly from a low price of $27.10 per barrel. That was also the biggest percentage drop since the first Gulf War in January 1991.
“Saudi Arabia and Russia are entering into an oil price war that is likely to be limited and tactical,” political risk consultancy firm Eurasia Group said in a statement. “The most likely outcome of this crisis is entrenchment into a painful process that lasts several weeks or months, until prices are...
