U.S stock futures and crude oil prices plunged immediately after the start of electronic trading late Sunday, as fears of a global oil-price war combined with coronavirus fears to rattle traders.
Dow Jones Industrial Average futures YM00, -3.85% sank more than 900 points as S&P 500 futures ES00, -4.11% and Nasdaq Composite futures NQ00, -3.85% tumbled more than 3%.
West Texas Intermediate crude for April delivery CLJ20, -21.92% plummeted 22% to $32.01 on Sunday, while May Brent crude BRNK20, -22.09% the global crude benchmark, fell 22% to $35.22 a barrel.
Oil futures plunged 10% on Friday after talks between the Organization of the Petroleum Exporting Countries and their allies collapsed, with Russia refusing to agree to a Saudi-led plan for additional crude production cuts.
In response, Saudi Arabia over the weekend slashed crude prices and is preparing to increase production, in a direct attack against Russia’s market share, the Wall Street Journal reported.
Analysts said a price war could push crude prices down to $30 a barrel, especially as the economic slowdown caused by the coronavirus outbreak slows global demand.
Read: OPEC+ oil-deal failure may lead to $30 oil
On Friday, the Dow Jones Industrial Average DJIA, -0.98% settled 256.50 points lower, or 1%, to 25,864.78, while the S&P 500 SPX, -1.70% lost 51.57 points, or 1.7%, to close at 2,972.37. The Nasdaq Composite COMP, -1.86% finished 162.98 points lower, or 1.9%, at 8,575.62.
Mark DeCambre contributed to this report.
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