Sunday 5 April 2020

Oil prices under pressure from #Saudi-Russia dispute, but tariffs provide support - Reuters

Oil prices under pressure from Saudi-Russia dispute, but tariffs provide support - Reuters:

Global benchmark oil prices are expected to open lower on Monday, but the decline may be muted as the market maintains hope that top crude exporters Saudi Arabia and Russia will strike a deal to curb production at a meeting that was delayed until Thursday.

Prices may decline more gradually after Saudi Arabia sent a signal that a production cut deal may be ahead, and the U.S. has said it will put pressure on Saudi Arabia and its allies for such a deal.

“I don’t know that anyone is going to get too aggressively short before the meeting,” said Robert McNally, President of Rapidan Energy Group in Bethesda, Maryland. 


Saudi Arabia’s decision to postpone its posting of the international prices for its crude for the first time indicates that it is not eager to flood the market with low-priced crude before a potential agreement. “That’s a pretty clear sign that they are open to cutting production in May,” McNally said.

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