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