Brent crude futures plunged nearly 30 per cent after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets.
On the Multi Commodity Exchange, crude oil for March delivery plunged by Rs 943 or 29.85 per cent, to Rs 2,216 per barrel with a business volume of 33,703 lots.
Crude oil for April delivery was quoting lower by Rs 899, or 28.03 per cent, to Rs 2,308 per barrel with an open interest of 3,711 lots.
Global crude prices tanked after Saudi Arabia on Monday cut its price for April delivery by USD 4-6 a barrel to Asia and USD 7 to the United States. The fall in prices was largely due to Aramco selling its Arabian Light at an unprecedented USD 10.25 a barrel less than Brent to Europe, reports said.
According to reports, Saudi Arabia plans to raise its crude oil production in April.
Globally, West Texas Intermediate crude oil fell 28.71 per cent to USD 29.43 per barrel and Brent Crude slumped 26.51 per cent to USD 33.27 per barrel in New York. VHP RUJRUJ