In the short term, oil prices fell by the most in one day since the 1991 Gulf War. The price of U.S. crude fell as much as 34% to $27.34 a barrel, a stunning drop for one day and the lowest price since early 2016. In morning trading in New York, U.S. oil traded down 16% at $34.50 a barrel, causing heavy losses for shares in energy companies.The decline followed Russia's refusal last week to join the OPEC oil cartel in proposed production cuts aimed at supporting prices.
But this time the Russians balked. They refused to join new cuts, or even to extend previous production cuts that were due to expire at the end of March. And the Saudis hit back, telling customers that they were going to ramp up production and slash prices for Asian customers.First, protecting market share. Both Saudi Arabia and Russia have seen U.S. producers take a chunk of their market, and falling prices help keep customers on board.
"So they've decided they're going to take some short-term pain in order to inflict damage on one of their major competitors," Adshead said.
This is why we should stop buying Saudi oil . Build more refinery capacity to use our own oil keeping Canadians employed .
Yup gas is going down 7 cents a litre across Canada on Wednesday. Gimme a break 7 cents.....wow. Liberals love the high price cause all their tax is based on a percentage. Of course they keep the price high in Canada. Go figure.
It's Trudeau's fault. Right?
Article should be titled 'gas prices going down to actual right prices finally'
Cheap gas! Woo hoo!
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It will all blow over within days or weeks. The evil media is out to paranoid the world. Calm cool, collective is not the nature of the mainstream media. The more intelligent news is not what the majority of the people are exposed to.
This sure reminds me of the SARS scare years ago.
Sun and wind not controlled by anyone. Time to move away from oil.