Oil Slides Amid Saudi-Russia Discord on OPEC+ Production Cuts - Bloomberg:
Oil slipped amid a split between Saudi Arabia and Russia over whether deeper production cuts are required to offset the demand hit from the coronavirus epidemic.
Futures fell 0.9% in New York Wednesday. The first day of OPEC+’s Joint Ministerial Monitoring Committee meeting culminated in Russian Energy Minister Alexander Novak leaving the gathering amid disagreement on the scope of proposed oil production curbs.
Riyadh has pushed for a supply reduction as big as 1.5 million barrels a day, while Moscow favors maintaining output at current levels through to the end of the second quarter. Saudi Energy Minister Prince Abdulaziz bin Salman said the committee made a “wonderful” recommendation but declined to provide details. OPEC+ ministers will discuss the recommendation at talks in Vienna on Thursday and Friday.
“OPEC’s meeting falling apart hurt the momentum oil had built,” said John Kilduff, a partner at Again Capital LLC in New York. “The market is going to need production cuts if it is ever going to stabilize.”
Oil slipped amid a split between Saudi Arabia and Russia over whether deeper production cuts are required to offset the demand hit from the coronavirus epidemic.
Futures fell 0.9% in New York Wednesday. The first day of OPEC+’s Joint Ministerial Monitoring Committee meeting culminated in Russian Energy Minister Alexander Novak leaving the gathering amid disagreement on the scope of proposed oil production curbs.
Riyadh has pushed for a supply reduction as big as 1.5 million barrels a day, while Moscow favors maintaining output at current levels through to the end of the second quarter. Saudi Energy Minister Prince Abdulaziz bin Salman said the committee made a “wonderful” recommendation but declined to provide details. OPEC+ ministers will discuss the recommendation at talks in Vienna on Thursday and Friday.
“OPEC’s meeting falling apart hurt the momentum oil had built,” said John Kilduff, a partner at Again Capital LLC in New York. “The market is going to need production cuts if it is ever going to stabilize.”
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