Singapore-listed oil-related stocks are facing large sell-offs on Monday after Opec and its allies failed to agree to an output cut amid the Covid-19 outbreak.SINGAPORE-LISTED oil-related stocks are facing large sell-offs on Monday after Opec and its allies failed to agree to an output cut amid the Covid-19 outbreak.
The inability to reach an agreement with Russia has resulted in a price war, with top exporter Saudi Arabia slashing crude for April delivery prices by US$4-6 a barrel to Asia and US$7 to the US. These are the largest cuts by Riyadh in the past two decades. As at 10.50am on Monday, benchmark crude prices are down 25 per cent, with West Texas Intermediate skidding to around US$31 a barrel and Brent crude to US$34 a barrel.
"If a new production-compliance agreement between Opec and Russia is not reached soon, oil prices could speed down to and possibly through the lowest levels of 2015/2016," said AxiCorp chief market strategist Stephen Innes.