The failure of Russia’s and Saudi Arabia’s oil industries to agree on oil production volume resulted in oil prices falling by almost a third on March 9th, 2020, the sharpest drop in a day since 1991. Demand for oil has dropped in the wake of the coronavirus and a global decrease in travel. In a meeting on March 6th, 2020, OPEC nations led by Saudi Arabia originally planned to cut oil supply to keep prices afloat. However, Russia opposed the production cut, possibly out of fear of losing market share to US shale producers. In retaliation, Saudi Arabia increased oil supply as a punitive measure against Russia anticipating that Russian oil producers will reconsider their decision after the resulting drop in oil prices. Saudi Arabia may also be increasing supply to to entrench itself as the leader in the oil exports industry.
