Prices were already depressed by declining demand (including by expected effects of the coronavirus spread on transportation) and record production in some non-OPEC countries (hello, US shale oil!).
Last week Russia refused to join OPEC in trimming production to stabilize prices, so Saudi Arabia hit back by starting a price war: by discounting its exports and
increasing production.
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Crude was on track for its biggest one-day drop since the 1991 Gulf war after the Saudi move, which threatens to swamp the oil market with supplies just as the coronavirus outbreak hits demand.
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The price shock has spread to stock markets, hitting energy companies particularly hard:
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“It is the most crude price-bearish combination since the early 1930s..."
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Full article:
https://www.ft.com/content/804d6c82-...d-df28cc3c6a68