It was everyone’s epic failure that the three-year agreement between OPEC and Russia ended in a mutually violent manner on Friday. A bitter oil market has emerged for some and an independent approach according to the others.
Brent futures had its biggest daily fall since December 2008, down $4.72, or 9.4 in percentage, to settle at $45.27 a barrel. It means that was Brent’s lowest closing price since June 2017.
West Texas Intermediate (WTI) crude dropped $4.62, or 10.1%, to $41.28, its lowest close since August 2016 and the largest daily percentage loss since November 2014.
More than 4.58 million U.S. front-month crude contracts changed hands this week, the busiest week ever for that contract.
Overall, both Brent and WTI have dropped more than 30% so far this year.
The divergence between OPEC and Russia has revived the fear of 2014 oil price collapse, with Saudi Arabia and Russia struggling for market share with US rock gas oil producers who have never participated in production limiting pacts.