The meeting between OPEC and its allies scheduled for Monday has been postponed amid ongoing tensions surrounding production cuts.
The virtual meeting between OPEC and its allies scheduled for Monday has been postponed, sources familiar with the matter told CNBC, as tensions between Saudi Arabia and Russia mount.The Monday meeting was set after President Donald Trump said to CNBC on Thursday that he expected Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman to announce a deal.
"It's probably going to crater," Again Capital's John Kilduff said. "There was a lot of optimism priced into oil Thursday and Friday. With this new Saudi, Russia spat, it doesn't look like it's going to come together." Both Saudi Arabia and Russia have sought U.S. cooperation in balancing the world oil supply. American drillers are still pumping near record levels as the world is coming to the edge of its ability to store oil.at the White House, and there was speculation he would ask them to cooperate in cuts. No agreement came of the meeting, but Trump did seem to reflect an industry view that market forces should determine prices.
Tensions between Saudi Arabia and Russia have escalated since. In comments Friday, Putin blamed the collapse in oil prices on Saudi Arabia pulling out of the more than 3-year-old OPEC plus deal, along with its increase in production and agreements for discounts, all of which exacerbated the blow from the coronavirus.
"Now we have two issues," said Helima Croft, head of global commodities research at RBC. "After President Trump's statement it seems rather unlikely any production commitment is forthcoming. And it looks like we might have a new diplomatic rift between Russia and the Saudis…The Saudi minister is pushing back furiously on the Russian minister's assertion that the Saudis are targeting shale.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Saudi Arabia denies withdrawing from OPEC+ deal, says Russia was the one that withdrewThe Saudi foreign minister said early on Saturday that a statement attributed to Russia's President Vladimir Putin about the kingdom's withdrawal from the OPEC+ deal is not correct, and that Russia is the one that withdrew, state agency (SPA) reported.
Read more »
Current talks among OPEC nations, U.S. insignificant for oil prices: Petrobras CEORecent negotiations involving leaders from OPEC nations and the United States will prove irrelevant for oil prices, which are low because of depressed demand, the chief executive of Brazil's Petrobras said on Thursday evening.
Read more »
OPEC+ debates biggest ever cut as virus destroys oil demandOPEC and allies are working on a deal for an unprecedented production cut equivalent to around 10% of global supply, an OPEC source said after U.S. President Donald Trump called on oil nations to stop the oil rout caused by the coronavirus pandemic.
Read more »
OPEC+ debates biggest-ever oil cut as virus destroys demandOPEC and its allies are working on a deal for an unprecedented oil production cut equivalent to around 10% of global supply, an OPEC source said, after the U.S. president called on producers to stop the market rout caused by the coronavirus pandemic.
Read more »
OPEC and allies reportedly set for video meeting as analysts pour skepticism on Trump's interventionOil producer group OPEC and its partners will reportedly hold an emergency virtual meeting on Monday.
Read more »