FTSE Crumbles as Oil Slumps 30%

Oil price war comes at vulnerable time for world markets which are on high alert because of the coronavirus panic

James Gard 9 March, 2020 | 11:28AM

oil

A 30% daily crash in the price of crude oil, the biggest fall since the 1991 Gulf War, has smashed the price of UK-listed oil companies BP and Shell and dragged down the FTSE 100 on Monday morning.

WTI and Brent crude were down 30% at the start of the day after Saudi Arabia effectively triggered an oil price war with Russia by saying it will ramp up production. Oil prices have already been hit hard this year as the spread of the coronavirus has triggered fears of a global recession. Saudi Arabia, which is part of the Opec cartel, had wanted to cut output in response to the global crisis but non-Opec member Russia did not support the move.

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James Gard  is content editor for Morningstar.co.uk

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