Crude oil slips below $30 a barrel after four years

New York, March 16: Oil prices fell below $30 a barrel on Monday as the worldwide coronavirus outbreak worsened over the weekend, exacerbating fears that government lockdowns to contain the spread of the disease would spark a global recession.

Top global oil producers Saudi Arabia and Russia have failed to agree on how to react as the reduction in global economic activity destroys oil demand, and have turned on each other to start a price war.

Saudi Aramco reiterated on Monday its plans to boost output to record levels to take a bigger share of the global market. Brent crude LCOc1 was down $3.75, or 11.1 per cent, to $30.10 a barrel by 1.26 pm EDT (5.26 pm GMT). The international benchmark earlier fell to $29.52 a barrel, its lowest since January

2016.

Saudi Aramco is likely to sustain higher oil output planned for April in May, Chief Executive Amin Nasser said, signaling the top oil-producing company is prepared to live with low oil prices for a while.

The coming flood of supply from Saudi Arabia and other producers could result in the largest surplus of crude in history, said global information provider IHS Markit.

The coronavirus outbreak, which has infected at least 174,000 people and killed around 6,700, already has caused oil prices to plummet by

50% since the start of the year. Many forecasters have adjusted down estimates on demand for crude, as the virus disrupts business activity, travel and daily life.