Oil prices plunged to lowest since 1991

The crude oil market has experienced today a major plunge since the year 1991.

"Crude at one point plummeted more than 30%, sliding the most since the Gulf War in 1991 after an OPEC+ alliance that had contained global production disintegrated," Bloomberg writes.

As reported by CNN, US oil prices crashed as much as 34% to a four-year low of USD 27.34 a barrel as traders brace for Saudi Arabia to flood the market with crude in a bid to recapture market share.

"Crude was recently trading down 27% to USD 30.04 a barrel. Brent crude, the global benchmark, plunged 26% to USD 33.49 a barrel. Both oil contracts are on track for their worst day since 1991, according to Refinitiv," the report reads.

Saudi Arabia escalated the situation further over the weekend. The Kingdom slashed its April official selling prices by USD 6 to USD 8, according to analysts, in a bid to retake market share and heap pressure on Russia.

Analysts said that Russia's refusal to cut production amounted to a slap to US shale oil producers, many of which need higher oil prices to survive.