Oil Prices Crash 30%

09 Mar, 2020

The huge sell-off follows the collapse of Saudi Arabia’s oil-cutting alliance on Friday © AFP via Getty Images

Oil prices crashed by almost a third after Saudi Arabia launched an aggressive price war, sending rattled stock markets plunging and spurring a rush into government bonds as investors sought havens.

Crude was on track for its biggest one-day drop since the 1991 Gulf war after the Saudi move which threatens to swamp the oil market with supplies just as the coronavirus outbreak hits demand.

Saudi Arabia will raise production and offer its crude at deep discounts to win new customers next month, according to two people familiar with the country’s oil policy.

Oil prices fell as much as 30 per cent but later Brent trimmed losses slightly to be down 25.2 per cent at $33.90 a barrel, while the sell-off for West Texas Intermediate sharpened to a fall of 27.3 per cent to $30.00 a barrel.

Source: Financial Times

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