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Oil down 20%, set for largest 1-day plunge since 1991 Gulf War on fears of global price war

March 9, 2020


Oil futures plunged to a four-year low Monday, on track for the biggest one-day drop since 1991 as OPEC and Russia appear headed for an all-out price war — shaking a market already reeling from the demand shock created by global spread of COVID-19.

West Texas Intermediate crude for April delivery CLJ20, -22.384% on the New York Mercantile Exchange dropped $9.11, or 22%, to $32.16 a barrel, after briefly trading below $29. May Brent crude BRNK20, -21.537%, the global benchmark, was down $9.94, or 21.9%, at $35.25 a barrel. The declines for both grades would be the largest since Jan. 17, 1991, according to FactSet, the day the U.S. and Gulf War allies bombed Iraq, kicking off Operation Desert Storm.

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