Welcome to Africanews

Please select your experience

Watch Live

News

news

Global oil prices plummet due to coronavirus

Oil market

Oil prices fell sharply on Monday, after OPEC members failed to strike a deal with oil-exporting countries and Russia.

Moscow refused Friday to further reduce crude oil production, to stem the fall in prices linked to the coronavirus epidemic, which has provoked the wrath of Saudi Arabia.

In response, Riad lowered the price of a barrel considerably, to “wrest from Russia its market share” – OPEC officials said.

According to Bloomberg News, Saudi Arabia has made the largest reduction in its oil prices in 20 years. A risky gamble that caused the share price of Aramco, the Saudi oil giant, to plunge by 9% and caused the barrel of Brent, the international benchmark, to fall from 45 to 31 dollars.

The news also brought the Asian stock exchanges to their knees.