Oil prices plunge, hit by erupting Saudi-Russia oil price war - Reuters

Oil prices plunge, hit by erupting Saudi-Russia oil price war - Reuters:

Oil prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.

A 20% slump in oil prices triggered another day of heavy losses on Wall Street’s main stock indexes as the rapid spread of coronavirus amplified fears of a global recession.

Saudi Arabia and Russia both said they would raise production at the weekend after a three-year pact between them and other major oil producers to limit supply fell apart on Friday. Moscow had refused to support OPEC in making a deeper oil cut to cope with the substantial fall in demand caused by the impact of coronavirus on travel and economic activity.

Brent crude futures LCOc1 were down $9.15, or 20.2%, to $36.12 a barrel by 1:06 p.m. EDT (1706 GMT). They earlier fell by as much as 31% to $31.02, their lowest since Feb. 12, 2016.

U.S. West Texas Intermediate (WTI) crude CLc1 fell $8.16, or 19.8%, to $33.12 a barrel. WTI earlier dropped 33% to $27.34, also the lowest since Feb. 12, 2016.