After Saudi Arabia cut prices and increased crude oil production in April, oil prices in the global market fell by 30 percent, causing a record loss to US oil.
Foreign news agency Reuters reports Russia's proposal to cut production of the Organization for Petroleum Exporting Countries (OPEC) to stabilize markets worried over the spread of the Coronavirus globally Saudi Arabia launches war on price.
Saudi Arabia reduced the cost of selling all grades of crude oil at $ 6 to $ 8 a barrel in April last week.
Sources told Reuters that Saudi Arabia also plans to cut its crude oil output to 100 million barrels a day in April after the end of the March to end production agreement.
Saudi Arabia, the world's largest oil exporter, is trying to punish Russia, the second-largest oil producer, for not supporting OPEC's offer to cut production last week.
Saudi Arabia, Russia and other major oil-producing countries have previously fought for their share in the market in 2014 and 2016.
"This is clearly a price war and the Saudis were the first to react to the weekend," ING Economics said in a note.
Brent Crude Futures fell 29% ($ 13.29) to $ 31.98 a barrel, which was $ 31.02 a barrel today, the lowest since February 12, 2016.
Brent Futures today is stepping in on the path of falling global oil prices in the Gulf War on January 17, 1991.
US West Texas Intermediate (WTI) crude dropped $ 13.29 (32 percent) to $ 27.99 a barrel, while it touched a high of $ 27.34 today, and the lowest level since February 22, 2016. Is.
The US benchmark has also been at the lowest level since January 1991.
"I think all the forecasts have come out, it seems like a race to the bottom to get an order," said Jonathan Bratt, chief investment officer at Australia's probes securities.