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Oil CRASHES 30% over Saudi Arabia-Russia crude price war & coronavirus fears

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Via RT Business

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 Russian 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.

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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.”

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“From April 1 neither OPEC nor non-OPEC have restrictions,” Russian Energy Minister Alexander Novak told reporters, while Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said: “I will keep you wondering.”

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