OIL DOWN 31+ PER CENT IN PRICE WAR

Oil markets tumbled more than 30 per cent after the disintegration of the OPEC+ alliance triggered an all-out price-war between Saudi Arabia and Russia that is likely to have sweeping political and economic consequences.

Brent futures suffered the second-largest drop on record in the opening seconds of trading in Asia, behind only the plunge during the Gulf War in 1991. As the global oil benchmark plummeted to as low as US$31.02 a barrel, Goldman Sachs Group Inc. warned prices could drop to near US$20 a barrel.

The cataclysmic plunge will resonate through the energy industry, from giants like Exxon Mobil Corp. to smaller shale drillers in West Texas. It will hit the budgets of oil-dependent nations from Angola to Kazakhstan and could also reshape global politics, eroding the influence of countries like Saudi Arabia. The fight against climate change may suffer a setback as fossil fuels become more competitive versus renewable energy.