Why global oil prices took a nosediveSaudi Arabia has escalated an historic drop in oil prices by cutting its April official selling prices from $14 to $8 in a price war with Russia.The price reduction comes after the collapse of the oil alliance between Organisation of the Petroleum Exporting Countries (OPEC) and Russia on Friday. The failure of a meeting at the OPEC headquarters in Vienna, Austria, left the oil industry shocked, sparking significant drops in oil prices Friday. Subscribe Now »Oil prices were already stuck in a sluggish market because of the coronavirus outbreak that has caused demand for crude to fall sharply. SEE ALSO :Saudis withdraw 21 cadets from United StatesAccording to Refinitiv statistics, a financial technology consulting company, the last experience of a drop in oil prices was in 2001 when the prices plunged by 15 per cent. Russia's decline to cut production amounted to a slap to US oil producers, many of which need higher oil prices to survive.

Source: Standard Digital March 09, 2020 10:18 UTC