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Oil tumbles nearly 30% after OPEC’s deal falls apart

by Abdul Hadhi - ahadhi@chemorbis.com
  • 09/03/2020 (10:41)
Crude oil futures plunged after Saudi Aramco cut its official selling prices (OSP) for all grades in April following the Organization of Petroleum Exporting Countries’ (OPEC) failure to agree with Russia on production cuts.

At 11am Monday Singapore time (3am GMT), WTI April contract was trading down $10.80/barrel or 26% at $30.48/barrel while the Brent May contract was trading down $11.28/barrel or 25% at $33.86/barrel.

Russia’s unwillingness last week to support deeper oil output cuts to cope with the impact of COVID-19 on demand resulted in OPEC removing limits on its own oil production, leading to fears of oversupply.

Oil oversupply worries combined with concerns over lower economic growth amid the COVID-19 outbreak have already affected Asian financial markets.

Japan’s NIkkei 225 Index was down 6.2% at 19.473.07 while Hong Kong’s Hang Seng Index was down 3.3% at 25,292.50 in morning trade.
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