Saudi Arabia Reduces Crude Oil Prices: Stress in Gulf Markets

Kuwait Index down 10 percent, Saudi market 8.30 percent, Dubai stock market down 7.90 percent

Saudi Arabia-Russia threatens price war for crude oil market share: Russia declines Russia's crude production

Dubai, Ta. March 8, 2020, Sunday

All of the Gulf's stock markets reached the bottom of a few years on Sunday when the OPEC meeting on Sunday failed to discuss a reduction in production, with crude oil prices continuing to fall due to the Corona virus.

Along with this, the price of Saudi Aramco, the world's largest crude oil producer, also reached 30.90 riyals below 32 rials of its IPO. Crude oil prices have been steadily declining worldwide due to corona virus demand for crude oil.

At this time, OPEC meeting on Sunday to launch a concrete plan against the Corona virus had failed and a clash broke out in Gulf markets on Sunday amid speculation of a price war between crude-producing countries Saudi Arabia and Russia.

Saudi Aramco, the world's largest crude producer and Saudi Arabia's state-owned crude oil company, fell below its 32 rial issue price to 30.00 rial. In addition, Kuwait index was down 10 percent, Saudi market 7.70 percent, Dubai's stock market declined 7.47 percent.

When crude prices reached a four-year low on Friday, OPEC and its allies met on Sunday to cut crude oil production to prevent further price cuts, which failed to make a decision to cut production.

The OPEC meeting had discussed cutting 1.5 million barrels per day in crude oil production to counter the impact of the Corona virus, but Russia declined to reduce production.

As a result, Saudi Arabia has cut its oil prices significantly, fearing a price war. Panic was seen in all Gulf markets, with the OPEC meeting failing. Gulf's largest Saudi stock market closed down 8.3 percent.

The world's largest crude oil company, with heavy refreshments, made a listing with a record IPO in December, but since then its market value has dropped from US $ 1.71 trillion to US $ 1.6 trillion.

The Dubai financial market fell 7.9 percent, the lowest in six years. The Abu Dhabi market fell 5.4 percent. Kuwait's All Share Index was reduced by 8.3 percent and the Premier Index by 10 percent after the Kuwait Bourse Authority stopped trading.