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Energy

Oil plunges 10% after Opec deal collapses

Oil prices plunged about 10% on Friday, after a proposal by major oil producers to cut output collapsed.

The plan had been intended to keep oil prices steady despite the hit to demand as the coronavirus slows travel, manufacturing, and global supply chains.

However, Russia declined to participate, with talks ending with no new deal to restrain production.

The result triggered some of the biggest one-day falls in prices in more than five years.

Brent Crude suffered its biggest one-day loss since 2008, falling more than 9% to about $45.27 a barrel. West Texas Intermediate prices tumbled 10.1% to $41.28, the biggest one-day fall since 2014 and the lowest level since 2016.

Oil exporters group Opec was pushing for an additional 1.5 million barrels per day (bpd) of cuts, which would have reduced production by about 3.6% of the world's total supply.

Non-Opec states - such as Russia- had been expected to contribute 500,000 bpd to the overall extra cut, Opec ministers said.

Oil prices have already tumbled about 30% since the start of the year.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.