FRANKFURT, Germany (AP) Oil prices are plunging after Saudi Arabia started a price war against Russia. The Saudis tried to get the Russians to cut oil production to keep prices from falling even more due to the coronavirus. Air travel has seen a decline and airlines are using much less fuel.
Russia didn’t agree. Now the Saudis are cutting prices and saying they’ll increase production. That puts pressure on Russia, but analysts say Russia’s industry can survive for quite a while at lower prices. And Russia may like the idea of lower oil prices hampering a key competitor: the U.S. shale oil industry.
Consumers, meanwhile, may see lower prices at the pump.