The Oman Crude Oil Futures Contract plummeted to a new low on Monday to $31.38/barrel on the Dubai Mercantile Exchange (DME) after losing almost 9 per cent of its value. The crude oil benchmark last traded at $34.79/b on Friday.
Monday’s downslide stems from the oil price war between Saudi Arabia and Russia that erupted following the collapse of the Opec+ alliance of Opec members and non-members. The rift caused a meltdown in global oil prices as well as equities amid mounting concerns over the spread of the coronavirus.
US benchmark West Texas Intermediate (WTI) briefly fell below $30 a barrel, or 5.5 per cent, in morning Asian trade before regaining its footing. It was trading at $31.13 a barrel at around 05:30 GMT, down nearly two per cent from Friday’s close.
Prices rallied briefly last week after US President Donald Trump announced $50 billion in Federal spending to stem the damage from the coronavirus and plans to buy “large quantities of crude oil” to top up strategic reserves.
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