Oil prices jumped in the morning of Asian trading hours on Tuesday following Monday’s more than 20% plunge, which saw US. West Texas Intermediate crude and international benchmark Brent crude post their worst declines since 1991.
The moves came following a tumble in oil prices in the previous trading session. WTI and Brent dropped 24.59% and 24.1%, respectively, sinking to more than 4-year lows.
The steep sell-off came amid escalating tensions between Saudi Arabia and Russia, which traders fear could lead to an excess supply of crude.
On Friday, OPEC ally Russia rejected the additional 1.5 million barrel per day production cut that the 14-member cartel proposed. After the unsuccessful talks concluded, OPEC’s de facto leader Saudi Arabia on Saturday slashed its official oil prices as it reportedly gets set to ramp up production.