Oil Prices Plunge To $30, Lowest Since Gulf War In 1991

Crude oil price crashed below $30 after Saudi Arabia launched a price war in reaction to Russia’s decision not to cut output.

This drop indicates the worst trading since the gulf war in 1991.

Ever since the outbreak of COVID19, oil price crash had become a concern, with fears that it could become worse if the virus persist.

Russia and OPEC had on Friday met to agree on a supply cut of 1.5 million barrels per day to address global fall in the demand for oil as a result of the coronavirus . However, the meeting ended in a deadlock.

Oil Benchmark, Brent Crude Oil, which Nigeria’s 2020 budget is benchmarked against, fell from $45 per barrel to $31.52.

While OPEC believes that cutting supplies will force prices to rise, the Russians however believe that higher oil price supports investment.

Following the oil price dispute, the Russians support that a price war is the only solution to curtailing the rise and spread of Shale oil.