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.
:: 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.
Most recent coronavirus developments in the UK:
- Victims were in Berkshire, Milton Keynes and Manchester
- Sunday saw a rise of cases to reach a total of 400 – the highest increase in cases in a – hour period
- Supermarkets have placed restrictions on items including pasta, anti-bacterial wipes and hand soap in a bid to prevent shoppers from stockpiling
- People returning from affected areas in Italy told to self-isolate regardless of whether they have symptoms
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- Foreign Office advises against all but essential travel to northern Italy
The
virus-stricken Grand Princess cruise ship with more than 200 Britons on board is due to dock in Oakland, California on Monday (Virus Outbreak: Global Emergency – Watch a special Sky News program on coronavirus at 6pm weekdays
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