Crude oil prices crash as Saudi Arabia, Russia start price war

Oil prices plunged around 25 per cent on Monday, heading towards their biggest daily loss since 1991 after Saudi Arabia slashed prices and set plans for a big increase in crude production in April.

Prices fell as much as 31 per cent following the Saudi move to start a price war after Russia was unwilling to cut output further as proposed by the OPEC to stabilize oil markets hit by worries over the global spread of the coronavirus.

Brent crude futures were down $11.31, or 25 per cent, at $33.96 a barrel by 0319 GMT, after earlier dropping to $31.02, their lowest since February 12, 2016. Brent futures are on track for their biggest daily decline since January 17, 1991, at the start of the first Gulf War.