Oil prices to fall amid news of delaying the Saudi and Russian talks
Global oil prices fell after the meeting of Saudi Arabia and Russia on the trend to cut production was postponed as the spread of the Corona virus affected demand, BBC reported.
Trump expected Saudi Arabia and Russia to cut supplies, but Saudi Arabia called for an urgent meeting on Monday, April 6, 2020, but was postponed to Thursday, while Russia’s energy minister said his country might return to the talks.
In Asian trade, Brent crude, the world record, fell 12%, while oil traded in the United States, known as West Texas Intermediate, fell more than 10%.
Both Saudi Arabia and Russia fought a price war in oil during the month of March 2020, after the disintegration of Russia’s alliance with OPEC, after Russia refused to agree to a continuation of production cuts as a result of reducing demand, and that war left more crude than required in the global market, and therefore fell to the lowest Level two decades ago.
US oil fell by two-thirds in the first three months of 2020, as it recorded its worst quarter ever, prompting Washington to try to broker an agreement between Saudi Arabia and Russia.
On Thursday, April 2, 2020, oil prices rose more than 20%, the largest one-day jump ever, amid signs that there is a near end to the conflict, according to BBC.