Oil prices dramatically dropped on Monday, down more than 30 per cent after a 10 per cent drop on Friday. Prices are falling as Saudi Arabia, Russia and other oil-producing countries argue about how much to cut production in order to prop up prices. OPEC and key ally Russia failed to agree Friday on a cut to oil production that would have contained the plunge, and on Saturday, Saudi Arabia's state oil giant Aramco slashed export prices. Shaffer said the demand-side drop was expected but the more recent development of a price war is a supply-side issue that's hammering the market. In 2014, OPEC held off production cuts in order to hold onto market share in the face of a resurgent U.S. oil industry.

Source: CBC News March 08, 2020 22:36 UTC