Oil prices hit record lows after Saudis announce price cut

Saudi and Russian disagreement send oil prices tumbling

Published: March 9, 2020 7:40am

Updated: May 29, 2020 7:42pm

Oil prices have dropped to a 20-year low, following Saudi Arabia’s announcement late Sunday that it would slash prices next month. 

Saudi Arabia’s decision follows a failed negotiation in which leaders asked Russia to cut back its oil production to maintain higher prices, amid global market uncertainty sparked by the coronavirus outbreak. 

The outbreak has created a decreased in demand for crude oil.

The failed negotiation was part of major talks last week between the group of oil-producing nations known as OPEC and 10 other countries that do not belong to that group of oil-exporting nations.

American oil companies took massive hits;  U.S. West Texas Intermediate crude futures fell by more than 20 percent, as did Brent crude futures. Analysts warn that prices could plunge as low at $20 per barrel.

“Coronavirus and OPEC+ falling apart were not expected or priced into the market a month ago,” Rebecca Babin, a senior equity trader for CIBC Private Wealth Management told CNBC.

The Facts Inside Our Reporter's Notebook

Links

Unlock unlimited access

  • No Ads Within Stories
  • No Autoplay Videos
  • VIP access to exclusive Just the News newsmaker events hosted by John Solomon and his team.
  • Support the investigative reporting and honest news presentation you've come to enjoy from Just the News.
  • Just the News Spotlight

    Support Just the News