Oil falls after Saudi Arabia, Russia delay meeting, Cushing stockpiles soar - Reuters:
Oil prices slumped on Monday, pulling back from last week’s gains after Saudi Arabia and Russia delayed a meeting of oil producers aimed at resolving growing worldwide oversupply as the coronavirus pandemic pummels demand.
The global oil market rebounded over 35% last week after sources at the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, said they are close to a deal on oil output cuts to reduce a global glut, though they want participation from the United States and others.
However, the meeting of the OPEC+ group, originally scheduled for Monday, has been delayed to Thursday as sniping between Russia and Saudi Arabia over last month’s collapse of an existing supply-cut agreement continued. Fuel demand is down by roughly 30% worldwide due to the coronavirus while those nations are flooding markets with unneeded supply.
“The delay in the OPEC+ meeting sparked much of today’s selloff as a result of major philosophical differences between Russia and the Saudis that will likely preclude a deal on Thursday,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Brent futures LCOc1 settled $1.06, or 3.1%, lower at $33.05 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell $2.26, or 8%, to end at $26.08.
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