Oil plummets 31% in biggest drop since Gulf War as Saudi cuts spark all-out price war

REUTERS/Andrew Kelly

• Oil markets tumbled the most in decades overnight on Sunday in a dramatic. The sell-off was fueled by sinking demand due to coronavirus concerns.
• This was the biggest drop since the Gulf War in 1991, after an OPEC+ alliance collapsed and triggered an all-out price war, Bloomberg said.
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Oil futures tumbled 31% in a matter of seconds overnight on Sunday, their sharpest decline since the Gulf War in 1991. The losses are being fueled by sinking demand due to coronavirus concerns, which has in turn sparked a series of price cuts.

Saudi Arabia slashed its prices by the most in at least 20 years over the weekend. A price-cut free-for-all has broken out globally following the collapse of an OPEC+ alliance last week.

Futures on the Dow Jones Industrial Average sank more than 900 points, while S&P 500 futures were hit with a 4% drop at open on Monday. Goldman Sachs analysts have warned that the price of oil could tumble even further, to $20 a barrel.

This is a developing story.

Get the latest Oil WTI price here.

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