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Saudi/Russia price war decimates oil prices

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March 9, 2020

Oil prices plunged more than 30% after Saudi Arabia opened taps in a price war with Russia, driving down global share markets today as investors rushed to bonds and the yen to hedge the impact of the coronavirus, according to a Reuters report.

Saudi Arabia shocked markets with its plans to boost oil production significantly following the collapse of OPEC's supply cut agreement with Russia, reminiscent of a 2014 drive that slashed prices by around two-thirds.

Brent crude LCOc1 futures fell $12 to $33.20 a barrel in trading, while U.S. crude CLc1 lost $11.80 to $29.48.