Oil prices plunged 9% as the development revived fears of a 2014 price crash, when Saudi Arabia and Russia fought for market share with US shale oil producers, which have never participated in output limiting pacts. The result will be higher oil price volatility and geopolitical volatility,” he said. They proposed far bigger output cuts than had been flagged prior the meeting, even though Moscow had long indicated its reluctance to support further production curbs. OPEC ministers said on Thursday they backed an additional 1.5 million barrels per day (bpd) of oil cuts until the end of 2020, equal to around 1.5% of global demand. They also called for extending existing OPEC+ cuts of 2.1 million bpd, meaning the proposed combined total of the cuts envisaged would have been 3.6 million bpd or about 3.6% of global supplies.

Source: The Express Tribune March 06, 2020 17:26 UTC