The share price of Oil Search Limited (ASX: OSH) was the worst performer in the ASX 200 (INDEXASX: XJO). It fell by 35%.
At the start of trading we learned that the oil-producing countries of OPEC plus Russia couldn't agree on a reduction of oil production. This led to a fall in the oil price by around 30% with Saudi Arabia cutting oil prices. Production is now a lot higher than demand, in a classic example of what happens to price when supply gets out of whack compared to demand.
Oil Search was the worst-performing oil business within the ASX 200, but there were several oil shares that fell by around 20% or more including: Santos Ltd (ASX: STO), Beach Energy Limited (ASX: BPT) and Worley Ltd (ASX: WOR).
Some commentators think that Saudi Arabia is trying to make the oil price so low that US shale oil producers would have to turn off production for a while.
