Saudi Arabia slashed its export oil prices over the weekend in what is likely to be the start of a price war aimed at Russia but with potentially devastating repercussions for Russia’s ally Venezuela, Saudi Arabia’s enemy Iran and even American oil companies.
The effects were quickly felt, as the Brent global oil benchmark price collapsed by about $11 a barrel, or 25 percent, late Sunday in the sharpest decline since at least 1991, and stock market futures fell by about 3 percent.
The Saudi decision to cut prices by nearly 10 percent on Saturday was a dramatic move in retaliation for Russia’s refusal on Friday to join the Organization of the Petroleum Exporting Countries in a large production cut as the coronavirus continues to slow the global economy and, with it, demand for oil. » | Clifford Krauss and Stanley Reed | Sunday, March 8, 2020
