Petrol May Drop to AU$1 per Liter in the Upcoming Price War

An Anonymous Coward writes:

OPEC tried to keep prices high by cutting output but Russia instead started a price war which could see petrol drop to AU$1. With Saudi Arabia and Russia battling it out for market share to get past the US it could be consumers who come out on top. This change could affect many markets from agriculture to shipping having impacts across the world.

Petrol prices in Australia are expected to drop - possibly as low as $1 a litre - after Saudi Arabia started a price war with Russia on Monday.

[...] Prices are falling as Saudi Arabia, Russia and other oil-producing countries argue about how much to cut production in order to prop up prices.

The Organisation of the Petroleum Exporting Countries (OPEC) suggested cutting back oil production to stabilise falling prices but Russia, the world's second-largest producer, did not seem to be on board.

It led to Saudi Arabia, the world's biggest oil exporter, slashing its official selling prices and pledging to release more supply onto the market in an attempt to punish Russia.

The price war saw prices for brent crude, which is the international standard, fall by 25.3 per cent to $33.83 per barrel, and the benchmark US crude drop by 26.1 per cent to $30.49.

It's the biggest price fall for oil since 1991.

Also, according to CNBC Oil Nosedives as Saudi Arabia and Russia set off 'scorched Earth' Price war:

Oil prices fell through the floor in early trading Monday, tanking as much as 30% after Saudi Arabia slashed its crude prices for buyers. The kingdom is reportedly preparing to open the taps in an apparent retaliation for Russia's unwillingness to cut its own output.

Read more of this story at SoylentNews.