Saudi Arabia and Russia rift sends crude prices sharply lower
By JUSTIN KUEPPER
Updated Mar 9, 2020
Crude oil prices plummeted after Saudi Arabia slashed oil prices by nearly 10% over the weekend in retaliation against Russia for its refusal to join the Organization of the Petroleum Exporting Companies (OPEC) in a large production cut. The move could spark a price war between the two oil producing giants that were previously working together in a three-year alliance to support prices.
Analysts aren't sure if the two parties could still reach a compromise or if the production increases will be long term. If the rout continues, oil prices could reach their lowest levels in five years and affect everyone from Venezuela and Iran to debt-laden U.S. shale producers. The only good news is that consumers could benefit from the lower prices.