Brent, WTI Prices Edge Down

EghtesadOnline: Oil prices fell on Monday, after Saudi Arabia and Russia delayed a meeting to discuss output cuts that could help alleviate global oversupply as the coronavirus pandemic pummels demand.

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06 April 2020

Brent crude slipped close to $30 a barrel earlier but pared losses to trade down 24 cents, or 0.7%, to $33.87 a barrel, CNBC reported.

West Texas Intermediate crude fell 41 cents, or 1.5%, to $27.93 a barrel, off a session low of $25.28, according to Financial Tribune.

Late last week, prices surged, with US and Brent contracts posting their largest ever weekly percentage gains due to hopes that OPEC and its allies would strike a deal to cut crude supply worldwide by at least 10 million barrels per day.

Saudi Arabia and Russia were initially set to meet on Monday to discuss output cuts, but that has now been pushed to April 9, after they blamed each other for the collapse of talks in March.

The countries are “very, very close” to a deal on cuts, Russia’s sovereign wealth fund chief told CNBC.

US President Donald Trump has said he will impose tariffs on crude imports if he needed to “protect” US energy workers from the oil price crash that has been exacerbated by the war between Russia and Saudi Arabia over market share.

Prices on both sides of the Atlantic marked their worst month on record in March as the coronavirus pandemic crippled demand in a market flooded with supplies.

Production cuts could come “too little, too late” to support oil prices, ANZ and Citi analysts cautioned.