Oil markets tumbled the most since the Gulf War in 1991 on Monday after the disintegration of the OPEC+ alliance triggered an all-out price war among the world’s biggest producers.
In one of the most dramatic bouts of selling ever, Brent futures sank by 31 per cent in a matter of seconds after the open of trading in Asia after already suffering their biggest loss since the global financial crisis at the end of last week. As Brent collapsed as low as 31 dollars a barrel, Goldman Sachs Group warned prices could drop into the 20-dollar-zone.
The cataclysmic collapse will resonate through the energy industry. It will hit the budgets of oil-dependent nations from Iraq to Nigeria and could also reshape global politics, eroding the influence of countries like Saudi Arabia. The fight against climate change may suffer a setback as fossil fuels become more competitive versus renewable energy.