Sensex breaks 2100 points due to crude oil price war

- Saudi Arabia launches price war with Russia, reduces crude prices by 30%

Ahmedabad. 9 March 2020, Monday

In the international market today, the stock market has been hit hard by the crude oil price war and the Corona virus and Yes Bank crisis. The Sensex gained 1,500 points while the Nifty lost 475 points. The Nifty is currently trading at 10,572. Bank Nifty, on the other hand, is trending below 27,000 for the first time since September 20, 2019.

Sensex 2100 has collapsed, hitting a further 584 Nifty after 1pm. The market is currently running at 35,503 points. Similarly, the Nifty is constantly going down. Similarly, the Nifty is down 584 points, currently at 10,404.

30% in crude

In the international market, the price of crude has dropped by 30%. Saudi Arabia's price war with Russia triggered a fall in prices, the biggest decline since 1991. In addition, the Corona virus outbreak has led to a decline in crude demand so that its supply has been boosted by pressure from sellers. The meeting between the OPEC and its partners was collapsed and no agreement could be made on reducing crude production.

International benchmark Brent crude futures fell $ 14.25, or 31.5 percent, to $ 31.02 a barrel. It is the beginning of the First Gulf War, January 17, 1991, and the biggest drop in crude prices since February 12, 2016. On the other hand, US West Texas intermediate crude prices also dropped by $ 11.28, or 27.4 percent, to $ 30 a barrel. This is the largest decline in WTI since January 1991 and the lowest level since February 22, 2016. It is currently trading at $ 32.61 per share.

Saudi Arabia has significantly reduced oil prices and has decided to increase production from next month. Crude oil prices have dropped more than 50% in the last two months. On January 8, 2020, crude was priced at $ 71.75 per barrel. Since then, crude oil prices have been steadily declining. The reduction in crude oil will also have a direct impact on petrol and diesel prices in India.

In the international market, the price of crude has dropped by 30%. Saudi Arabia introduced the price war with Russia, which is the biggest decline since 1991. In addition to the Corona virus outbreak, crude demand has been declining so sales forces have seen a boom in their supply.