Oil prices fall to 17-year low as Saudi Arabia-Russia standoff continues, coronavirus hits demand

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Oil prices fall to 17-year low as Saudi Arabia-Russia standoff continues, coronavirus hits demand
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Oil prices fell to the lowest in more than 17 years as demand plunged as a result of the pandemic, and an unrelenting price war between Saudi Arabia and Russia showed no signs of easing.

Such a move could prompt a wave of bankruptcies and investment cuts in the U.S. which, in turn, would have a noticeable impact on shale production.

Countries have gone into lockdown due to the coronavirus pandemic, with flights all over the world canceled as airlines ground their planes, hitting economic activity and fuel demand. That has led to excess supply flooding the market as well., International Energy Agency head Fatih Birol said, according to a Reuters report on Friday.

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