Crude oil prices plummeted and posted their biggest single-session drop in about 30 years on Monday after Saudi Arabia slashed prices and said it would aim to boost output.
Concerns about outlook for energy demand due to the coronavirus attack contributed as well to oil's sharp plunge.
Saudi Arabia slashed its official prices by the most in at least 20 years over the weekend and signaled to buyers it would ramp up output. Meanwhile, Russia said its companies were free to pump as much as they could.
Saudi Arabia's move comes after OPEC and its allies failed to reach an agreement on additional production cuts last week. The OPEC and allies had met in Vienna to consider a proposal to deepen production cuts, aiming to support oil prices.
West Texas Intermediate Crude oil futures for April tanked to $27.34 a barrel before recovering some lost ground to eventually settle at $31.13 a barrel, down $10.15, or about 24.6%, from previous close.
Brent crude futures tumbled to about $31 a barrel.
Both WTI and Brent crude futures registered their lowest levels since February 2016 today.
On Friday, WTI crude oil futures ended down $4.62, or 10.1%, at $41.28 a barrel.
The meeting between OPEC and its allies concluded in Vienna on Monday with the cartel and its allies failing to agree on the former's proposal of reducing production by another 1.5 million barrels per day from April to end of this year.
The meeting concluded with the participants deciding to continue with the existing level of production cut till the end of this month. The OPEC+ has decided to meet in early June to review the situation.
Meanwhile, in virus-related news, roughly 11,000 people have been infected worldwide.
Several countries are reportedly adding travel restrictions and in Italy more than 16 million people are literally locked in as 366 people are dead on Coronavirus infection. The Middle East countries are implementing restrictions such as shutting down of schools and shopping malls.