Delay in meeting between Saudi Arabia and Russia, further drop in oil prices in the global market

Delay in meeting between Saudi Arabia and Russia, further drop in oil prices in the global market

Saudi Arabia and Russia demanded during the Coronavirus that delayed the meeting further to discuss a partial reduction in supply in the global markets.

At the start of the trading day, Brent crude fell 66 cents, or 1.9 percent, to $ 33.45 this morning, which previously touched a level of $ 30.

West Texas Intermediate crude oil fell 98 cents, or 3.5 percent, to $ 27.36 a barrel, which previously touched $ 25.28.

Prices soared last weekend, prompting the Organization of the Petroleum Exporting Countries (OPEC) and its allies to expect a deal to cut crude supplies worldwide by at least 10 barrels per day.

Saudi Arabia and Russia were initially scheduled to meet on Monday to discuss production cuts, but that meeting is expected on April 9, after accusing each other after the March talks ended.

"The meeting between Russia and Saudi Arabia changed the air late," said Michael MacCarthy, chief strategist at CMC Global Markets in Sydney.

Keep in mind that US President Donald Trump had said that if he needed to 'save' America's energy sector workers from the fall in oil prices, they would impose tariffs on crude imports that would be used by Russia and Saudi Arabia. The market share in the middle has declined due to the fighting.

March was the worst month in terms of prices on both sides of the Atlantic as demand for the Coronavirus dropped, while the supply was high in the market.

ANZ and city analysts warn that 'production cuts may be too few and too late to raise oil prices'.

Tags

Organization of the petroleum exporting countries (opec)

Related Posts