Oil crashes, fears of 'price war' up after OPEC deal failure

Oil prices crashed on Monday after Saudi Arabia slashed its official selling price, adding uncertainty to a world economy that continues to struggle with COVID-19.

Crude plummeted more than 30 percent at one point, marking the hardest drop since the Gulf War in 1991. As of 2:25 A.M. GMT, the WTI and Brent Crude are still down under 20 percent.

Screenshot of OILPRICE.com as of 2:25 A.M. GMT.

The world's top oil exporter reportedly plans to raise its production significantly after OPEC's failure to strike a deal with its allies regarding production cuts, giving rise to fears that tensions between oil producers will exert more pressure on prices.

According to Bloomberg citing people familiar with the conversations, "Saudi Arabia has privately told some market participants it could raise production much higher if needed, even going to a record 12 million barrels a day."

(CGTN)