The oil prices plummeted by 31 per cent this morning when the Asian trading markets opened.
The reason for this is the stranded negotiations between the OPEC countries and Russia, which on Friday refused to agree to a reduction in oil production due to the reduced demand for crude oil in the world caused by the coronavirus epidemic.
Saudi Arabia then implemented its biggest price cuts in 20 years, which could lead to a price war. This is the largest drop in oil prices since 1991. That was when the United States launched the “Operation Desert Storm” to expel Iraq from Kuwait.
Earlier there have been reports of stock markets crashing around the world due to the coronavirus panic that is spreading. Time will tell if this will lead to an economic recession.