Oil plunges 25%, hit by erupting Saudi Arabia-Russia oil price war
Crude prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.
A nearly 25% slump in oil prices triggered panic selling and heavy losses on Wall Street’s main stock indexes as the rapid spread of coronavirus amplified fears of a global recession.
Saudi Arabia and Russia both said they would raise production at the weekend after a three-year pact between them and other major oil producers to limit supply fell apart on Friday.
Moscow had refused to support the Organization of the Petroleum Exporting Countries in making a deeper oil cut to cope with the substantial fall in demand caused by the impact of coronavirus on travel and economic activity.
