Oil prices dropping in price battle with Russia

by Magnolia McComish
edited by Jalen Beliveau

Saudi Aribia dropped its export oil prices in the start of a price war targeted at Russia, which caused a large magnitude of repercussions in ally countries according to the New York Times.

The prices dropped by nearly 10 per cent on Saturday, March 8. This came after Russia refused to join the organization of the Petroleum Exporting Countries in lowering prices.

The change in oil price coinsides with the coronavirus outbreak the world is currently facing. The fear caused by the virus is

(Photo: New York Times)

hurting the global economy and the demand for oil. This is seen in stocks globally falling, recently hitting America and Europe.

Lowering oil prices will not only hurt America, but will also affect other countries, according to the Times that rely on the oil market, like Iran and Venezuela. A price war would not be a benefit to the many countries.