Oil prices have fallen by almost 30 percent after Saudi Arabia decided to lower the asking price for its oil. Moreover, the country announced that it would be producing considerably more in April. The Saudis want to force Russia to agree with a production reduction proposed by the oil cartel OPEC.
American oil was worth a little more than $ 30 a barrel, at $ 30.03 on Monday morning around 8:00 am. Brent oil costs $ 33.79 per barrel. Last week prices were still above $ 50 a barrel.
Most oil-producing countries thought that price was already on the low side and agreements were therefore made within OPEC for a reduction in production to support the price. However, Russia, which is not a member of OPEC but has regularly made agreements with the cartel on production in recent years, saw nothing in it. With the step, Saudi Arabia seems to want to force Russia to its knees.
On Sunday the stock exchanges in the Middle East were already seriously undermined by the failed negotiations.