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Oil prices crashed as much as 30% within seconds of the market opening on Sunday evening after the Organization of the Petroleum Exporting Countries (OPEC) failed to strike a deal on output cut on Friday.
International benchmark Brent crude futures fell by about 30% to $32.05 per barrel, while WTI crude fell 27% to $30.07 per barrel, market data showed.
US West Texas Intermediate (WTI) and international benchmark Brent crude futures fell over 20% in Sunday night trading,
This is the first time oil prices have fallen lower than $34 per barrel since February of 2016.
The price fall comes as, on Saturday, Saudi Arabia slashed the official selling price for its crude grades to all destinations as of April, after OPEC’s oil supply cut deal with Russia and other countries fell through.
On Friday, OPEC+ members held negotiations in Vienna, Austria, suggesting the need to further decrease oil production amid the outbreak of coronavirus (COVID-19), where Russian Energy Minister Alexander Novak rejected an ultimatum to join in a collective production cut.
The spread of the news virus to other major economies such as Italy and South Korea and the burgeoning cases in the United States has increased the concerns that oil demand will slump this year.
