Oil’s 24% Plunge in a Day Signals No End in Sight for Meltdown - Bloomberg:
Oil is ensnared in such a crisis that Wednesday’s 24% plunge in New York wasn’t even its worst day this month.
Futures are now at the lowest level in almost two decades after Saudi Arabia signaled it’s doubling down on a price war with Russia just as demand evaporates. Prices dropped below $25 a barrel for the first time since 2003 in London and tumbled 24% in New York as the kingdom vowed to keep producing at a record high “over the coming months.”
For the last 10 days, Riyadh has issued nearly daily statements raising the stakes in its shock-and-awe battle with Moscow, first announcing massive price discounts and output.
The kingdom is now pledging to pump flat out for months to come, and prices are in free fall. Oil is now down over 45% since failed talks between members of the OPEC+ alliance to further cut output and tackle the demand fallout from the virus outbreak.
Oil is ensnared in such a crisis that Wednesday’s 24% plunge in New York wasn’t even its worst day this month.
Futures are now at the lowest level in almost two decades after Saudi Arabia signaled it’s doubling down on a price war with Russia just as demand evaporates. Prices dropped below $25 a barrel for the first time since 2003 in London and tumbled 24% in New York as the kingdom vowed to keep producing at a record high “over the coming months.”
For the last 10 days, Riyadh has issued nearly daily statements raising the stakes in its shock-and-awe battle with Moscow, first announcing massive price discounts and output.
The kingdom is now pledging to pump flat out for months to come, and prices are in free fall. Oil is now down over 45% since failed talks between members of the OPEC+ alliance to further cut output and tackle the demand fallout from the virus outbreak.
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