Oil prices decline at the opening of Monday’s trading session following a decision by Saudi Arabia and Russia to postpone a meeting on a potential supply cut agreement to Thursday, reflecting the market’s persisting fears of oversupply.
Prices surged on Friday, with both Brent and WTI contracts posting their biggest weekly percentage increases on record, propelled by hopes that OPEC and non-OPEC producers would reach an agreement on supply restrictions. Previously, US President Donald Trump said he would put pressure on the producers to achieve such a deal.
Oil prices have been under intense pressure since the first quarter due to the COVID-19 pandemic, which destroys fuel demand. At the same time, Saudi Arabia and Russia engaged in a price war, threatening the market with even more glut. Over the weekend, Saudi Arabia signaled the possibility of an output cut deal.
The international benchmark Brent crude LCOc1 lost $2.39 (7%) to $30.03/barrel by 10:16 GMT, while US WTI crude CLc1 fell by $2.41 (8.5%) to $25.93/barrel.
