After the price war between Saudi Arabia and Russia began, the price of oil fell about 30 percent on Monday.
The Brent crash of 31.5 percent to $ 31.02 a barrel was the largest drop since January 1991 at the start of the first Gulf War. This also applied to US light oil, which initially fell by around 27.5 percent to $ 30 a barrel.
Experts predicted a conflict that would last for weeks or months. “Saudi Arabia and Russia have entered an oil price war that should be limited and tactical,” wrote the Eurasia Group in an analysis.
On Friday, the talks between Opec and Russia about a common conveyor brake failed. Saudi Arabian oil company Saudi Aramco announced that it would lower the official sales price for all types of oil and all customers. For example, deliveries to Northwest Europe should be cheaper by $ 8 a barrel. The kingdom – the world’s largest oil exporter – also plans to ramp up production, the Reuters news agency said on Sunday from two insiders.
The price of oil is already under pressure because of concerns about a global economic downturn in the wake of the coronavirus epidemic.
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