A disagreement between the world’s largest oil producers has caused the biggest upset the Gulf oil markets have seen in two decades.

An unprecedented slump hit markets in the region, down more than 25% after a 10% drop on Friday.

This is the single biggest drop seen since the Gulf War, in large part due a Russian-Saudi price war. Followed by a decision by Saudi to amp-up oil production, which undercut prices and sparked a frantic market sell-off, fueled by Covid-19 panic.

The tumultuous few days saw hundreds of billions of US dollars wiped

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30% drop in price of Brent and WTI is the single biggest drop since first Gulf War in January 1991. Collapse of #OPEC deal combined with #coronavirus is having major impact on global markets. #Oil #COVID19 @TheWarMonitor @Natsecjeff @anasalhajji @Almatrafi pic.twitter.com/eociIq0VGV

— Intelfeedia (@intelfeedia) March 8, 2020

The price of Brent oil fell on Monday to early 1990 prices

Saudi upped its oil production when prices fell by 10% on Friday and leading producers failed to agree on cuts in oil supplies to prop up prices. With no agreement, this number could drop further still.

With a 30% drop, prices now average at $31 a barrel.

The lack of agreement sparked the sale of other stocks, a primary factor in the Monday’s slump.

Markets face uncertainty: Now down more than 25% in total after a 10% drop last Friday

https://twitter.com/FHaggui/status/1236870074381860864?s=20

Markets worldwide are feeling the pressure

Panic and confusion hit globally as markets in the States and the UK brace for the biggest fall since 2008, the world’s last major recession.