Oil futures prices fell more than 20 percent on Sunday after Saudi Arabia lowered the official price for selling crude oil, indicating the start of a price war after OPEC talks with Russia failed to reach an agreement on production cuts.
On Friday, Russia rejected OPEC’s proposal to make significant production cuts in order to stabilize prices damaged by the economic consequences of the Corona virus.
OPEC responded by removing restrictions on its oil production.
Brent crude futures fell $ 9.57, or 21.1 percent, to $ 35.70 a barrel by 2216 GMT, while US West Texas Intermediate crude fell $ 8.62, or 20.9 percent, to $ 32.66.
In one of the most dramatic sales operations ever, Brent crude futures fell by 31 percent in a matter of seconds at the opening of trading in Asia on Monday, after oil prices have already suffered from the largest losses since the global financial crisis at the end of last week, according to what it reported US Bloomberg Agency.
And Saudi Arabia had reduced, at late evening, Saturday evening, the official selling price of Avril shipments of all its raw materials to various destinations.
Riyadh plans to increase its production in the same month to more than ten million barrels per day for the first time since May 2019.