SINGAPORE: Oil prices fell heavily on Wednesday, reversing gains made earlier in the day, as Saudi Arabia moved to boost output capacity in an escalation of a price war with Russia. West Texas Intermediate fell 1.7 percent to about $33 a barrel while Brent crude was off 1.7 percent at $36 a barrel. This week’s oil rout was triggered by Riyadh driving through the biggest price cuts in two decades at the weekend, following Moscow’s refusal to agree to reduce production. Saudi Arabia and others from oil-exporting cartel OPEC (Organization of Petroleum-Exporting Countries) led a push last week to reduce output further to shore up prices amid slumping demand due to Covid-19. But Moscow, the world’s second-biggest oil producer, blocked the move, signaling an alliance with OPEC, that was aimed at supporting the market, was unraveling.

Source: Manila Times March 11, 2020 17:37 UTC