Oil Down About 20 Pc After Saudi Price Cuts

Oil plunged about 20 per cent Monday after top exporter Saudi Arabia made deep price cuts following a failure by OPEC and its allies to strike a deal to support energy markets.

Singapore, Mar 9 (AFP) Oil plunged about 20 per cent Monday after top exporter Saudi Arabia made deep price cuts following a failure by OPEC and its allies to strike a deal to support energy markets.

The two main contracts were both down about 20 per cent in morning Asian trade, with West Texas Intermediate sliding to around USD 32 a barrel and Brent crude to some USD 36 a barrel.

Bloomberg News reported on Sunday that Saudi Arabia had begun an all-out oil war after making the biggest cut in its oil prices in the last 20 years.

The Gulf powerhouse cut its price for April delivery by USD 4-6 a barrel to Asia and USD 7 to the United States, with Aramco selling its Arabian Light at an unprecedented USD 10.25 a barrel less than Brent to Europe, Bloomberg said.

The Saudi cuts were in response to a failure by OPEC and its allies to clinch a deal on production cuts.

The OPEC+ meeting was expected to agree to deeper cuts of 1.5 million barrels per day to counter the effects of the novel coronavirus, but Moscow refused to tighten supply. (AFP)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)

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