Oil markets tumbled the most in decades overnight on Sunday. The sell-off was fueled by sinking demand due to coronavirus concerns. This was the biggest drop since the Gulf War in 1991, and it comes amid the collapse of a crucial OPEC+ alliance, which in turn triggered an all-out price war. Visit Business Insider's homepage for more stories.
Oil futures tumbled 31% in a matter of seconds overnight on Sunday, their sharpest decline since the Gulf War in 1991. The losses are being fueled by sinking demand due to coronavirus concerns, which has in turn sparked a series of price cuts. Saudi Arabia slashed its prices by the most in at least 20 years over the weekend. A price-cut free-for-all has broken out globally following the collapse of an OPEC+ alliance last week. Talks broke down after Russia refused to meet Saudi Arabia's request for output cuts, which would boost prices. Futures on the Dow Jones Industrial Average sank more than 900 points, while S&P 500 futures were hit with a 4% drop at open on Monday. Goldman Sachs analysts have warned that the price of oil could tumble even further, to $20 a barrel. The drop follows an oil prices plunge on Friday amid concerns that coronavirus will slash demand for fuel. Prices sank as much as 11% — the most since 2014. The latest development comes after OPEC warned on Thursday that it expects global oil demand to increase by 480,000 barrels per day this year — less than half its 1.1 million barrel-per-day estimate in December. In response, it recommended cutting output by 1.5 million BPD for the rest of this year. The coronavirus outbreak that originated in Wuhan, China, has killed more than 3,800 people and infected more than 109,000. The virus, which causes a disease known as COVID-19, has spread to at least 105 other countries. SEE ALSO: Oil plunges 11%, the most since 2014, after Russia refuses Saudi Arabia's request to cut output Join the conversation about this story » NOW WATCH: What it's like to ride the world's longest flight
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Royal Dutch Shell and BP lose more than £32bn from their combined market value Saudi Arabia’s...Royal Dutch Shell and BP lose more than £32bn from their combined market value Saudi Arabia’s oil price war has wiped billions of pounds from the market value of the industry’s biggest companies after oil markets recorded one of the biggest price slumps in history.The decision of the world’s largest oil-producing nation to increase its production even as the coronavirus outbreak stalls global oil demand triggered a 30% drop in oil prices on Monday morning. Continue reading...
Move follows Russian refusal to join Opec-led production cut aimed at keeping prices highThe price of...Move follows Russian refusal to join Opec-led production cut aimed at keeping prices highThe price of crude oil has plunged by almost 27% after Saudi Arabia, the world’s top oil exporter, said it would step up production from next month, flooding global markets and most likely depressing petrol and diesel prices.A barrel of Brent crude stood at $33.09 a barrel on Monday morning, a fall of 27%. It was the worst one-day fall for Brent since the start of the first Gulf war in 1991. US crude fell 27% to $30. Continue reading...