Oil prices plummeted around 30% on Monday after Saudi Arabia slashed its official selling prices and set plans for a dramatic increase in crude production next month, starting a price war even as spread of the coronavirus erodes global demand growth.
Prices fell by as much as a third following Saudi Arabia's move after Russia balked at making a further steep output cut proposed by OPEC to stabilize oil markets hit by worry over the economic impact of the coronavirus.
Brent crude futures were down $12.23, or 27%, at $33.04 a barrel by 05:52 GMT, after earlier dropping to $31.02, their lowest since Feb. 12, 2016. Brent futures are on track for their biggest daily decline since Jan. 17, 1991, at the start of the first Gulf War.
U.S. West Texas Intermediate (WTI) crude fell by $11.88, or 29%, to $29.40 a barrel, after touching $27.34, also the lowest since Feb. 12, 2016. The U.S. benchmark was potentially heading for its biggest decline on record, surpassing a 33% fall in January 1991.
Source : Reuters