2020 Russia–Saudi Arabia oil price war
On 8 March 2020, Saudi Arabia began a price war with Russia, causing a major fall in the price of oil, with US oil prices falling by 34%, crude oil falling by 26%, and brent oil falling by 24%.[1]
The price war was caused by a breakup between the Organization of the Petroleum Exporting Countries and Russia over proposed oil production cuts due to the 2019–20 coronavirus pandemic. Oil prices had already fallen 30% since the start of the year due to a drop in demand.[2]
The fall in prices was one of the causes of the global stock market crash on 9 March 2020, which became known as Black Monday.
As demand continued to fall dramatically, oil prices went down further, reaching a 17-year low on 18 March where Brent was priced at $24.72 a barrel and WTI at $20.48 a barrel.[3]
On 30 March 2020, the price of Brent Crude fell 9% to $23 per barrel, the lowest level since November 2002.[4]
On 20 April 2020, Oil prices reached a record low, falling into negative values, due to the ongoing coronavirus pandemic and the Russia–Saudi Arabia oil price war.[5]
References
[change | change source]- ↑ Business, Matt Egan, CNN. "Oil crashes by most since 1991 as Saudi Arabia launches price war". CNN. Retrieved 2020-03-10.
{{cite web}}:|last=has generic name (help)CS1 maint: multiple names: authors list (link) - ↑ "Oil Prices, Stocks Plunge After Saudi Arabia Stuns World With Massive Discounts". NPR.org. Retrieved 2020-03-10.
- ↑ Sheppard, David; Raval, Anjli; Foy, Henry (18 March 2020). "Oil prices hit lowest level in 17 years as demand plunges". Financial Times. Retrieved 22 March 2020.
- ↑ Coronavirus: Oil costs hit 2002 low as markets digest surge in infections by James Sillars, Sky News, 30 March 2020
- ↑ "Oil prices fall to historic lows". The Guardian. 20 April 2020. Retrieved 20 April 2020.
