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Oil retreated after Saudi Arabia and Russia postponed their meeting

US, WASHINGTON (NEWS OBSERVATORY) — Oil prices fell on Monday after Saudi Arabia and Russia postponed a meeting to discuss production cuts that could help ease supply oversupply in global markets at a time of falling demand due to the coronavirus epidemic.

And Brent crude fell to nearly $ 30 a barrel earlier, but reduced losses to a decrease of 24 cents, or 0.7 percent, to $ 33.87 a barrel by 0639 GMT. US West Texas Intermediate crude fell 41 cents, or 1.5 percent, to $ 27.93 a barrel, after a session in which it was traded at a lower price of $ 25.28.

Saudi Arabia and Russia were originally scheduled to meet on Monday to discuss production cuts, but the meeting was postponed to April 9 after they accused each other of responsibility for the collapse of the March talks.

The head of the Russian sovereign fund told CNBC television on Monday that Saudi Arabia and Russia were “very, very close” to an agreement to cut oil production.

Prices on both sides of the Atlantic witnessed the worst month in March due to the paralysis that caused the Corona Virus pandemic (demand) in a flooded market.

Analysts at ANZ and City warned that production cuts may come “too little, too late”.

But Robert McNally, president of the Rapidian Energy Group in Bethesda, Maryland, said a move by Saudi Arabia to delay the announcement of official selling prices for its materials indicated it did not want to flood the market with cheap supplies before a possible deal.

A Saudi source told Reuters that the Kingdom postponed the announcement of prices until Friday, pending the outcome of a meeting between OPEC and its allies regarding possible production cuts.

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Article is written and prepared by our foreign editors from different countries around the world – material edited and published by News Observatory staff in our US newsroom.