Oil prices surged more than six percent in Asian trade Tuesday following heavy losses a day earlier after top exporter Saudi Arabia began a price war with Russia.
The Ministers of Finance of the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Kuwait…173 | the publication reaches you by | Bahrain News
Prices had plunged by almost a third Monday, the biggest drop since the 1991 Gulf War, after Riyadh drove through massive price cuts in a bid to win market share.
The bust-up signals the disintegration of an alliance between OPEC and Russia, the world’s second-biggest oil producer, which sought to control supply to support prices.
“Investors are buckling in for a protracted and precarious battle of the oil mega powers for world dominance,” said Stephen Innes, chief market strategist at AxiCorp.
He said it was unclear whether the Saudi move was “a short-term strategy or will be sustained for a prolonged period – which makes the outlook for crude prices extraordinarily uncertain”.
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