The oil price for the first time since 1991 fell to $31 on Monday after Saudi Arabia started a price war with Russia.
The price war started with Saudi Arabia cutting down its selling prices and vouching to release its restricted supply onto a market rolling from falling demand because of the coronavirus outbreak.
On global record, Brent crude futures fell by as much as $14.25, or 31.5%, to $31.02 a barrel which is recorded as the biggest percentage drop since Jan. 17, 1991 (first Gulf War) and the lowest since Feb. 12, 2016. and traded at $35.75 at 0114 GMT.
Also, the U.S. West Texas Intermediate (WTI) crude fell by $11.28, or 27.4%, to $30 a barrel which is the biggest percentage drop since 1991 (the first Gulf War) and the lowest since Feb. 22, 2016 and traded at $32.61.
With these records, Saudi Arabia renowned as the world’s biggest oil exporter is making efforts to penalize the world’s second-largest producer Russia, over demurring production cuts proposed by the Organization of the Petroleum Exporting Countries (OPEC) on Friday.
On the other hand, OPEC and other oil producers seconded to the production cuts to bolt the falling prices caused due to the coronavirus outbreak.
Meanwhile, Saudi Arabia plans to boost crude output above 10 million barrels per day (BPD) in April after the end of OPEC+ deal which is the current supply deal between OPEC and Russia designed to end in March.