FTSE 100 fell over 8% in early Monday trading as crude oil prices tumble after Saudi Arabia started a price war as Russia walked away from the OPEC+ meeting on Friday without agreeing to further oil production cuts. The crude oil market has been under pressure the last weeks as the coronavirus impact has hammered global demand expectations. Now the index has entered a bear market as is 22% down from the 2020 highs.
Asian stock indices ended sharply lower on account of the crude oil slump. Nikkei ended with heavy losses over 5% while the index futures in Wall Street are over 4% lower.
Energy stocks in the index were the hardest hit and among the significant underperformers on the market. Royal Dutch Shell Plc A Shares are 21% lower at 1249, BP Plc is 18.59% lower at 321.88, BHP Group Plc is 15.24% at 1129 and TUI AG is 1444.35% lower at 456.80.