Brent Crude Futures Drop 25% After OPEC Fails to Strike Deal
This is the first time oil prices have fallen lower than $34 per barrel since February of 2016, after OPEC+ failed to forge an alliance with Russia on slashing oil output.
US West Texas Intermediate (WTI) and international benchmark Brent crude futures fell over 20 percent in Sunday night trading, after the Saudi-led OPEC, or the Organisation of the Petroleum Exporting Countries, failed to strike a deal.
International benchmark Brent crude futures fell by about 30 percent to $32.05 per barrel, while WTI crude fell 27 percent to $30.07 per barrel, market data showed.
Wow. Oil prices falls 30% immediately after market opens as Saudi Arabia launches oil price war.
— David Sheppard (@OilSheppard) March 8, 2020
On Saturday, Saudi Arabia slashed the official selling price for its crude grades to all destinations as of April, after OPEC’s oil supply cut deal with Russia and other countries fell through.
On Friday, OPEC+ members held negotiations in Vienna, Austria, suggesting the need to further decrease oil production amid the outbreak of coronavirus (COVID-19), where Russian Energy Minister Alexander Novak rejected an ultimatum to join in a collective production cut.