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Coronavirus: Oil prices collapse and stocks dive as panic accelerates – Sky News, Sky.com

Coronavirus: Oil prices collapse and stocks dive as panic accelerates – Sky News, Sky.com
                                                     

The FTSE 110 is forecast to open 6% down on Monday after oil costs fell by a third overnight in a renewed coronavirus-linked sell-off.

The price of Brent crude fell below $ a barrel at one stage to record its worst daily plunge in percentage terms since the build-up to the Gulf War.

It was blamed on Saudi Arabia starting a price war with Russia following their failure last week to agree a deal to curb output and help stabilize prices – hit by a plunge in demand because of the COVID – outbreak.

  

A barrel of Brent crude oil cost more than $110 in 2014A barrel of Brent crude oil cost more than $110 in 2014A barrel of Brent crude oil cost more than $110 in 2014       

Image:
         A barrel of Brent crude oil cost more than $ (in and was last below $ (in early)       

:: Plunging oil price is damaging to UK pension funds

The plunge in stock market values ​​over the past fortnight also demonstrate fears that measures to contain the virus will cripple global economic growth.

Financial spreadbetters saw the FTSE falling more than (points – over 6% – at the open in London to 6, points, with energy stocks likely to feel the worst of the pain.

The latest stock market rout began in Asia where the Nikkei in Tokyo was trading more than 5% lower while Hong Kong’s Hang Seng was down by almost 4%.

US futures suggested the Dow Jones Industrial Average would lose almost 5% of its value – falling more than 1, (points at the open due at 1.) pm UK time.

Market analysts pointed to the fallout from last week’s meeting of major oil-producing nations involving the Opec cartel led by Saudi Arabia and non-member Russia.

A deal had been expected that would have seen output cut by more than a million barrels per day combined, in a bid to prop up prices.

Saudi Arabia responded to the failure of the talks by threatening to raise Brent crude production from next month, to force Russia into line.

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