Asian stocks expected to slump, Saudi Arabia cuts prices, hits oil market
Asian stock markets are expected to be severely hit on Monday. Investors will keep seek for the safe heaven, the bond market, to hedge against the economic impact of the new crown virus epidemic. Over the weekend, a big new is that Saudi Arabia will plan to sharply cut the official oil prices. In the earlier session today, oil prices have plummeted by more than 20%.
Saudi Arabia plans to sharply increase production after the Organization of the Petroleum Exporting Countries (OPEC) and Russia’s production reduction talks broke down. Saudi Arabia had offered this battle for its own market share in 2014 and caused oil prices to plummet by about two-thirds.